April 10, 2015
Let the Cash Flow
Free up funds with the Production Class Equipment Lease from John Deere Financial
The new Production Class Equipment (PCE) Lease program from John Deere Financial offers an affordable and flexible way to build a full, state-of-the-art fleet.
"The PCE Lease is just one of the total package, but we think it's awfully important because it has to do with dollars and cents," says Tom Langan, territory finance manager at JDF. "It has to do with keeping your fleet relevant."
The program's competitive lease residuals and low rates give customers a cash-flow advantage. And the option to include warranty coverage for unexpected repairs makes monthly payments predictable and easy to manage.
"The lease establishes a monthly cash outlay – since you're paying for the machine, basically a rental payment, you know exactly it’s going to cost you each month," Langan says.
According to Jake Dubreuil, sales manager at Schmidt Equipment in Oxford, Massachusetts, the option to add warranty and predictable payments allows customers to easily budget for their actual cost per hour.
"There's minimal expense during the lease term. The only thing the customer is responsible for is maintenance items, so they can budget and bid jobs more effectively."
The PCE Lease also gives equipment owners the opportunity to upgrade or add to their fleets on a more regular basis.
"It really is a fleet-management tool," says Langan, "For example, if you were planning to buy two pieces of equipment, you could more productively lease three and get the most uptime by not running machines for 10,000 or 20,000 hours."
Cost savings were what encouraged Steve Boucher, owner of Boucher Construction in Leominster, Massachusetts, to break away from his company's 50-year tradition of purchasing equipment in favor of the more flexible PCE Lease option.
"We added a few more pieces to the mix because it made sense to get rid of one loader and lease three for the same payment. The cash-flow savings in the PCE Lease was a huge part of our decision making.
"John Deere Financial was instrumental in putting three new units on our jobsites that will save us money in the long run," says Boucher. "We don't have to worry about machines going down for repairs and maintenance."