THE SHOP

Performance & Hotrod Business February '14

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With options come choices and decisions, and each business has unique needs. (Courtesy Gressman Powersports) BUSINESS owned provides much more flexibility over working with a traditional lender like a bank," he says. "We can look at a business and find creative ways to work with them in their specific situation." Shops make money from using capital equipment, not necessarily from owning it. (Photo courtesy Custom Auto) work on the assumption that the equipment will have value at the end of the lease term," he adds. "Whether that's a sale of the equipment to the lessee or whether we pick that equipment up at the end of the lease and resell it to someone else, we'll recapture some of that value at the end of the lease term. Because of that, we don't charge the lessee the full value of the equipment over the term of the lease." 80 n Performance & Hotrod Business PHBFEB.indd 80 n Bayless says many lease agreements also require no down payment, which provides an additional benefit when it comes to preserving valuable capital for other investments. All told, leasing is beneficial primarily because it offers financial flexibility and immediate cash savings for business owners. "Working with an organization like ours that is independent and privately Beyond Leasing Many manufacturers and distributors of major shop equipment partner with leasing companies to provide leasing options with varying terms and conditions, so the best approach is also the simplest: Ask your rep what might be available. Steve Perlstein, sales manager for Mohawk Lifts, an Amsterdam, N.Y.-based supplier of auto and truck lifts, has spent 33 years in the industry, so he's familiar with how a shop business works from the perspective of those who are "spinning wrenches." "For both big companies and little companies, you make money from using capital equipment, not necessarily from owning capital equipment," he says. "It's what you do with that equipment to make money that counts." Mohawk Lifts offers a number of options for the shops it works with, including a "true lease" option where the lessee can purchase the capital equipment out- February 2014 1/3/14 12:17 PM

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