What Type of Vendors?
Sell Equipment that holds trade-in value and there is an established secondary used market and/or Equipment that needs to be upgraded/updated/replaced every 3-5 years
What is a Vendor Residual Lease (VRL):
Provides the option to have either the Lessee purchase the equipment at a set residual price or to have a third-party vendor pay the residual off for the Lessee and take ownership of equipment.
What are the customer benefits of a Vendor Residual Lease?
- Blends the benefit of both a Tax and Capital Lease Transaction
- Offers a lower monthly payment while avoiding the hassle of an end-of-term buyout negotiation
- Allows customer to keep equipment current and up to date with new technology
- Give the customer option to keep the equipment at the end should they choose to at a known/set value
- Ability to pay less through lease than purchasing the equipment outright
36-month VRL with a 15% end-of-term purchase option vs. purchasing outright
AFG is here to help provide the tools to close more deals and offer a complete solution to your customers.