Leasing cost of money...

[Larry Gude]

...any of you people provide capital for leasing equipment? I got a million of them so, I am not looking for capital at the moment. However, if you can answer this question, you may move to the head of the line;

How much does your money cost me?

I ask this and, over the years, lease people act like they have no idea what I am talking about. They talk about how a lease is fully an expensive vs. a purchase is principal and interest but, that's not the question.

Then, they say "Well, it's not like a loan. There are money factors and..."

Stop. Just stop.

I borrow $75k from you, it's gonna cost me X on top of the $75 k over three years plus whatever we agree for the residual. That works out to an interest rate in effect, yes? So, just tell me how much your money costs so I don't have to figure it out on my own. I am the customer. I am comparing your to your competitors. Make me happy. Earn my business.

What am I missing here? Why is this such a difficult question?

 

[ProfMoneyWise]

I once walked into a car dealership with a tablet of paper and a box of good old Crayola's.

I said, "I must be stupid, I need you to draw this out for me. I read what you gave me about leasing a car. I've even done some researach on my own (this was way before the internet). For the life of me I cannot figure out why I should lease rather than buy outright. Strike that. I have figured out it is the most expensive way to own an automobile and why you would want me to go this route but I have not figured out why you keep telling me it makes sense on my side of the deal."

Did not mean to hijack your threead, but the leasing and confusing tactic made me remember this little event in my life.

I have found that if I cannot easily understand it and then explain it to others so that they can easily understand it I need to stay as far from it as possible. This explains why I guess I am where I am and all those others who had "sure things" going are where they are. I like where I am.