Gym equipment leasing – Get The Cheapest Quote
The average business owner does not fully understand leasing and hence can feel out of their depth with regards to negotiating the cheapest leasing quote for gym equipment. Here, we explore some of the ways we can help you get the cheapest leasing quote.
Understand basic leasing terminology
APR, flat rate, yields, residual values, operating leases, finance leases, balloon payments, rate per thousand. This is all basic terminology we use in the world of leasing. However, to someone who does not work in the leasing sector, it can all sound quite daunting. Ask us what some of these words mean, it will save you money.
APR and Flat rate
APR stands for Annual Percentage Rate. This is a term you will hear frequently and is the way most companies calculate an interest rate. We refer to this as the “true rate.” Flat rate is defined “as a charge of level of payment that remains the same.” The flat rate is normally just under half of what the APR, hence, if we say to you the flat rate is 4%, the APR will be about 10%.
Compare APR to flat rate of interest example
Let’s say you want to borrow £10,000.00 over three years and the APR is 10%. Paying back monthly, with no deposit, the repayment will be £311.30 per month.
Total repayments will be 36 months x £311.30 = £11,206.80
Interest is total repayments – capital. £11,206.80 – £10,000.00 = £1,206.80
Yearly interest is £1,206.80 / three years = £402.26.
In this case, the flat rate will be £402.26 / £10,000.00 = 4.02%.
Get two quotes
There are lots of independent gym equipment leasing companies that will be more than happy to supply you with a leasing quote. Even if it is just for peace of mind, always ask for a second lease quote.
Say you are looking at a bank loan
The facts are most bank loans are offered at a cheaper interest rate than leasing. This does not mean that a bank loan is the best product for you, and the leasing sector would not be a multibillion pound industry if everyone opted for a bank loan. The facts are that a leasing company will drop their rates to win the deal. It’s better for us to have a client with a small profit than no client at all.
Don’t give too much away
Some companies will email us our competitors quote and just say “make sure your quote is cheaper.” Play a little bit hard to get and do not give too much info away.
Please give us a call on: 01494 611 456 and speak to our divisional director ‘Scott Rogers’ . Or send us an email to hello@westwon.co.uk
