Price indexes across the equipment rental and leasing industry rose in the fourth quarter of 2012, according to a recent report by Statistics Canada. The sharpest increase was in the “Office machinery and other commercial and industrial machinery and equipment rental and leasing services” category, where it rose by 1%. The leasing and financing industry saw its price indexes increase 0.2% for heavy equipment and 0.6% for commercial and industrial machinery.
How Does a Price Index Affect My Rates?
The price index is an indicator of industry-wide rates for equipment leasing, and even a minor percentage like the one above means that rates are going up. This may mean that if you get a quote for equipment leasing or financing, it may be slightly higher than one you would have received a few months ago.
Buy Expensive Equipment Only When You Need It
While a rate increase on financing can mean more money over the lifetime of the equipment, increases like the ones that the price index indicates are minor and aren’t worth panic-buying over. It would be more of a concern if the actual price of the equipment itself were going up, not the rates to finance it. This is especially true of high-dollar purchases in the heavy, commercial and industrial equipment categories.
Office Equipment May Be a Different Story
Office equipment leasing and financing, on the other hand, is usually for a smaller dollar amount and an increase in leasing and financing rates may be a good reason to purchase computers you may have slotted for later in 2013. Upgrading office is something you’ll probably want to do sooner rather than later to insulate your business against any further increases if you’re planning on making the purchases in the next year.
Where a Broker Helps Your Business
Increases in rates can make decisions like when to lease or finance more complicated. A broker is there to make your life easier and give your business expert advice on these decisions. We’re the voice of reason in a market that always encourages you to buy now and ask questions later. We ask those questions up front and save you money in the long run by doing so.
Equipment financing brokers like Patron West may be able to negotiate a good rate for your equipment purchase, but that isn’t where their value lies. The value of a broker is in finding you the terms that fit your operating budget. We make sure to present you with a transparent deal that won’t leave you with any unpleasant surprises like balloon payments at the end of a term. We can do things like shop our lenders to find you a longer repayment period than you would get from conventional sources, and in many cases will be able to find financing for businesses that may not qualify for bank financing due to the size of the business or the fact that it has just started up.
Contrary to what most people think when they hear the term “broker”, rate shopping is really not what we’re here to do. We’re here to help you save money over the long term, and rates are only a small part of that picture.
Contact Patron West today to get us on board as your expert advisers on how and when to buy or lease your equipment in ever-changing market conditions. Then you can worry about your business while we look at how you can save money on the equipment you need.