Leasing -- Is It Right For You?

posted on Wednesday, August 10, 2016 in Blog

In today's farm economy with tight margins and even tighter lines of credit, getting equipment can sometimes be difficult. Leasing may be a viable option for you and your operation. Here are a few things to consider when thinking about leasing;


  • Depending on term, less money required up front.
  • Generally lower payments than installment loans of the same term.
  • Build equity with a higher payment.
  • Pay for the use of the equipment, return it at lease end, or exercise your purchase option.
  • Schedule equipment replacement at less cost than a cash purchase.
  • Reduce downtime, keep newer equipment in your fleet.
  • Increase your cash flow with lower payments and generally lower up-front cost.
  • Eliminate the task of disposing of used equipment.
  • Possibly less expensive and more efficient option to renting equipment multiple times each year.


  • Depending on the lease type, your equipment does not count as an asset on your financial statement (off-balance sheet financing).
  • Subject to hour restrictions (annually).

Before making any financial decision, be sure to consider your specific needs, explore your financing options, and make a decision based on the facts. And because your needs are always changing, what works for you today, may not be the right option tomorrow. Interesting in learning more about leasing? Talk to your salesman today!

Source; John Deere, Purchase or Lease?