Leasing Options

Put The Power of Leasing to Work for You

Leasing offers numerous benefits, including 100% financing, accelerated tax write-offs, improved cash flow, access to modern equipment, and flexibility at the end of the lease term. 

Whether you're on the fence or ready to get started today, we're happy to help! Connect with one of our experts below, find your nearest dealership, or explore our current lease promotions!

Titan Machinery Salesman with customer signing contract

What is Leasing?

In its simplest terms, leasing is a legal contract that allows you (the lessee) to use equipment owned by a lessor (Titan Machinery) for an agreed-upon time period in exchange for regular monthly payments! Choosing to lease has a variety of benefits and can be a great option for many construction and farm operations, as outlined below. Additionally, we often offer leasing promotions to bring you the best deals in the industry.

Why Lease?

Conserves Cash Flow

In any business, cash flow is king, making this your number one benefit of leasing. By leasing, you spread out payments over multiple years, avoiding the large upfront costs of purchasing equipment outright. Your lease becomes a fixed monthly line item, allowing you to maintain a steady cash flow and budget accordingly. 

LOWER PAYMENTS

Lease payments cover only the portion of the equipment's value that will be depleted during the lease term, often resulting in lower lease payments compared to loan payments, freeing up cash within your business. Rather than money, a leasing company lends the use of equipment or machinery, and you pay a periodic lease rental or payment. In other words, you only pay for what you use!

Less Taxing

For tax purposes, leases are classified as either true leases or conditional sales leases. With a true lease, you can deduct your full lease rental payment as an operating expense rather than depreciating the asset. With a conditional sales lease, you take depreciation just as you would with a loan while still benefiting from the traditional flexible financing offered in a lease.

A Clean Balance Sheet

Equipment leasing, or "off-balance sheet financing," helps improve a business's balance sheet by allowing a business to list lease payments as footnote items and thus not increasing liabilities the way a loan would. This helps reduce the amount of taxes your business pays, offsets taxable income, and improves your ability to obtain additional credit. 

Stay Competitive

Naturally, when you reach the end of your lease and are allowed the flexibility to decide your next steps, you have the opportunity to upgrade your equipment more consistently than if you were to purchase equipment from the start. Leasing allows you to stay up-to-date with technological advancements taking place in your line of work and can help keep your business competitive.

Flexible End-of-Lease Options

All leases have end-of-lease purchase options listed on the lease agreement. The most common purchase option is a fixed purchase option (FPO). With an FPO, you may trade in at any time, or at the end of the lease, you may either purchase the equipment for the residual amount stated upfront or return it to us. On the other hand, you may also select a purchase or renewal only (PRO). While an FPO will give you a better tax deduction, a PRO lease will lower payments to improve current cash flow.

Titan Machinery's Preferred Lease Program

Titan Machinery offers Preferred Lease options on hundreds of new and used farm equipment and construction equipment in inventory. Click the button below to learn more about our Preferred Lease Program or to view a sample of the low payment & lease options available.

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READY TO GET STARTED?

Whether you're on the fence with further questions or are ready to take your next steps toward leasing, our experts are happy to help! Connect with us below, and we'll contact you as soon as possible.

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