Financing & Leasing
Shields really understands the business of owning high-dollar equipment and knows the importance of procuring rolling stock in a fiscally-wise manner. There are several financial means by which a firm can acquire a hearse or limousine and the consultants at Shields can guide you through the pros and cons of these various options.
The information on this page is solely intended as a general guideline to the different types of leases / purchases we deal with on a daily basis. We do not claim that this information is 100% infallible or updated for current / changing market trends. Please consult your accountant or another financial professional for final analysis of your investment.
Financing & Leasing Options
Purchase
This method of acquiring a vehicle entails the buyer paying for the vehicle outright at delivery. This could involve a loan from a bank of the buyer’s choice or funds directly from the buyer.
In-House Financing
At Shields we are proud to offer In-House Financing options to our customers who qualify. For full details regarding what our In-House Financing options encompass please give us a call and we will be glad to walk you through the process.
Leasing
- Also called “walkaway lease” or “traditional lease”
- Typical term is 60 months (but can be different)
- At end of term, customer returns car back to dealer in good condition and has no further responsibility (car must be within mileage and condition limits set forth in agreement)
- Customer is only paying for a “portion” of the car; at lease end, the car still has “life” (value) left and can be sold again; therefore, customer enjoys lower payments during the term because he/she is not paying for 100% of the vehicle
- 100% of the lease payments can be expense – written against your taxes
- Often, lease rates are a little better than a straight purchase rate because under leasing laws, the bank can depreciate the car as an asset and can therefore give a more attractive lease rate
- Customer cannot depreciate the car since it is not an asset on the customer’s books
- Ideally, this works well when a customer does not want to keep the car for an extended amount of time (wants to keep more current body style vehicles)
Financing
- Also called “dollar buyout” lease
- Typical term is 60 months (but can be different)
- At end of term, the customer owns the car 100%
- This is virtually identical to financing the car through a local bank
- Customer is paying for the entire full value of the car over the term, so the payments are higher than a straight lease (but customer will own the car at the end)
- Customer is able to depreciate the vehicle as an asset on the company’s books
- Payments cannot be expense because the car is an asset on the company’s books
- Typically, these rates are a little higher than a straight lease because the bank cannot depreciate the car as an asset
- Ideally, this works well when a customer wants to keep the car for many years
