[Corey9212]

Hello I'm looking at a cabbed 3046R with a bunch of addons (premium cab with all the options, backhoe with 18" bucket and stationary thumb, loader with 73" high volume bucket and pallet forks, 72" mmm, front snowblower, 60" frontier disk, and frontier poly broadcast spreader)and got denied financing but got accepted for lease with a $1 buyout at the end of 5 years. My question is what's the difference between financing and leasing? Any benifits of one vs the other? Any downfalls of one vs the other?

Also does anyone own this tractor or any of the addons that could give me their opinions of it (pros and cons) anything I need to be aware of?

Thank you.
Corey.

 

[JimR]

I suspect the difference in financing is really more about JD Financial's ability to come and collect the equipment if you fail to make a couple of payments. Here in the US anyway, it's a lot easier (from a legal perspective) for them to pick up a leased piece of equipment than it is to do a repo.

Are you operating a business? IIRC, JD Financial won't do leases for sales to individuals.

 

[Corey9212]

I suspect the difference in financing is really more about JD Financial's ability to come and collect the equipment if you fail to make a couple of payments. Here in the US anyway, it's a lot easier (from a legal perspective) for them to pick up a leased piece of equipment than it is to do a repo.

Are you operating a business? IIRC, JD Financial won't do leases for sales to individuals.

Hey Jim, I am doing it mostly for the chores around the home but do have a few people (8-10) I mow lawn for and do snow removal in the winter, I told the salesman that but not sure if it's enough for them to consider it a business or not.

 

[JimR]

I just took a quick look at their Canadian site and they don't list any leasing for residential buyers. It looks like they may be offering you their "Landscape & Grounds Care Financing" (business) lease.

AFAIK, the big difference there (in the US anyway) is how to claim the cost on your business taxes. If you take out a loan on it, you claim depreciation. If you lease, then the lease cost itself becomes a business expense. But you'd have to talk to a Canadian tax person on how that works for you.

 

[Corey9212]

I just took a quick look at their Canadian site and they don't list any leasing for residential buyers. It looks like they may be offering you their "Landscape & Grounds Care Financing" (business) lease.

AFAIK, the big difference there (in the US anyway) is how to claim the cost on your business taxes. If you take out a loan on it, you claim depreciation. If you lease, then the lease cost itself becomes a business expense. But you'd have to talk to a Canadian tax person on how that works for you.

Thank you for the info Jim, is there any benifits to leasing vs financing or is it strictly one for business and the other for personal?