Lease Information
Heritage Coach Company understands the business of owning high-dollar equipment and knows the importance of procuring this equipment in a fiscally-wise manner. There are several financial means by which a business can acquire a hearse or limousine and the consultants at Heritage Coach Company 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.
Straight Lease
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 expensed - written against your taxes
Oftentimes, 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)
Lease-Purchase
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 expensed 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 since the car
Ideally, this works well when a customer wants to keep the car for many years
Trac Lease
Typical term is 60 months (but can be different)
At end of term, the customer owns the car 100%, but also guarantees to pay a pre-determined residual amount
This lease is helpful when the customer wants lower payments than a straight purchase but also wants to own the car at lease end
The customer must fully understand that the agreed upon residual amount is his / her responsibility to pay to the dealer at lease end - this is not optional
The customer can dictate the payment amount by how much he / she agrees to pay at lease end…the higher the end payment, the lower the monthly payment during the lease term
BE CAREFUL about some companies offering you "too-good-to-be-true" lease payments…CHECK YOUR PAPERWORK CAREFULLY…there is probably a guaranteed payment at the end of which you may be unaware
Trac leases are useful tools when the customer is AWARE it is a trac lease…some unscrupulous dealers have used this type of lease unbeknownst to the funeral home to beat other dealer's pricing - KNOW what you are signing!
