As 2014 winds down, you’re likely already deep into planning for 2015 — ordering seed, pulling soil samples, deciding which inputs to prepay and whether equipment needs replacing or upgrading. Perhaps now, more than in recent years, the equipment decision will lead you to another question: Buy or lease?
The decision to buy or to lease is tightly tied to your individual situation and should include counsel from your tax adviser. Here are some points of comparison from CNH Industrial Capital — the only finance company dedicated to Case IH — to help you get started:
Lease
- More-productive equipment for less money
- Lower payments, greater working capital
- Fixed cost over the term of the lease
- Flexible, customized payment schedules
- May provide certain tax advantages
- Off balance sheet treatment- lease payments are expensed
Buy
- Equipment ownership builds equity
- Flexible, customized finance options
- On balance sheet treatment
- Interest payments and depreciation are deductible
You can lease nearly any type of equipment, from tractors to combines and from planters to sprayers. At certain times, you might even find a combination of leased and purchased equipment makes the most sense for your operation.
Resources
In addition to working closely with your tax adviser, you can count on your Case IH dealer to help you evaluate your options. Your Case IH dealer can access the vast resources available through CNH Industrial Capital. This handy payment calculator can help you make some basic comparisons between buying and leasing. You can find additional resources and evaluation tools through your local Extension service. One Kansas State University publication compares buying, leasing, renting and custom hiring options with in-depth examples.
Regardless of where your evaluation leads, CNH Industrial Capital can help you get into the right Case IH equipment to support the unique needs of your business. Specialized finance programs and flexible leasing packages put you in the driver’s seat of industry-leading Case IH equipment while staying within your budget. The CNH Industrial Capital Productivity Plus Account is available for all your Case IH parts and service purchases. No-nonsense warranties and comprehensive protection plans insure your valuable equipment and provide peace of mind.
The decisions you make between now and Dec. 31 can significantly impact your operation for years to come. Be sure to access all of the available resources to help you make the best decisions for your situation. Your Case IH dealer and CNH Industrial Capital are here to help.
