What interest rates and tires have in common
When was the last time you bought a car primarily because of the tires? Listen, good tires make the ride. But when making a purchase decision, tires probably don’t make the most-wanted list. In financing commercial equipment, there’s a bunch of people kicking tires rather than focusing on what’s most important. In fact, interest rate might be the most over-valued item in financing equipment?
Older, outdated equipment can lead to increases in rental expense, downtime and maintenance costs. Newer, more reliable equipment, in-service improves cash flow and may lower overall costs at a level more impactful than a few points of interest rate.
Each asset is often chance to win more business. Understanding how much revenue you can bring in is the single most important factor in evaluating a commercial equipment purchase. The opportunity cost of not having the asset working for your company often overwhelms any single part of the acquisition process.
Older equipment just doesn’t work as well. Without the current technology, your company will likely produce less. Employees that use less efficient equipment are often less satisfied with their job. The cost of inefficiency can be a hidden, but important factor in the process
Payment over price.
Buying a new asset for a good price is a job well done. But the most important financial matter is cash flow. Low rate and great payment are not the same thing. Ask your finance partner to help you match your payment to your cash flows and you’ll reap the benefits of a stronger bottom line.
Are you kicking tires? We help clear up the misconceptions of the finance business for our customers. Straight talk, plain-spoken, common sense that can be a key to your success. Key Credit Corporation offers finance programs and an unmatched standard of service that gives dealers the ability to grow sales and business owners an easy process to buy equipment. Let’s talk.