Financing Advantages

Many customers choose Zip's financing as the right option for them. Some of the advantages are lower insurance costs, build equity, exclusive ownership, no mileage limitations, no excessive wear & tear clause and no pre-payment penalties are some of the advantages. Read more about financing below and complete an online credit application or call us today at (800)222-6047.

Tax Advantages

Purchasing the equipment with a finance program may allow you to expense the cost of the equipment in the year in which the equipment is placed in service under IRS Section 179 of the tax code. The maximum IRS Section 179 deduction, as adjusted for inflation, is $500,000. The dollar limitation may be adjusted for inflation for future tax years. Depreciation and interest expense are tax-deductible expenses over the IRS useful life of the equipment and life of the loan, respectively. Please contact your tax advisor.

No Pre-Payment Penalties

A loan allows you to pay off the loan at any time, without prepayment penalties, giving you full ownership and the right to sell your equipment.

Build Equity

As loan payments are made, you will build an equity position in the equipment. This may be beneficial if you plan to keep the equipment longer than the financing term. This equity may be used as collateral on other loans.

Exclusive Ownership

Upon the payoff of the loan, the vehicle is yours to keep or trade-in on your next vehicle rather than turning in at the end of a lease.

Lower Insurance Costs

Your insurance costs may be lower with a loan as the rates usually drop as the vehicle gets older whereas a leasing company may impose conditions keeping premiums higher. If the car is stolen or totaled, you settle with the insurance company, but still must pay the full loan amount. With a lease, if the car is stolen or totaled, you must pay the leasing company its cash value, plus any past due payments or charges.

No Additional Sales Tax

Implications With a loan, in most states, sales tax in paid in advance with no further sales tax implications to you as the owner of the equipment. With a lease, if you purchase the vehicle at the end of the lease term, additional sales tax may be due on the purchase price.

No Mileage Limitations

As you own the vehicle, there are no mileage limitations with a loan. With a lease, you may be limited to a fixed number of miles per year. Exceeding this limit will incur excess mileage charges, usually of 15 cents per mile adding additional cost to a lease.

No Excessive Wear & Tear Clause

A loan has no excessive wear and tear clause. With a lease, most contracts limit reasonable wear and tear during the term of the lease and you will be charged for exceeding those limits when you turn in the vehicle.

One Stop Financing

All your financing is handled by one source. Your finance specialist at Zip's Truck Equipment, Inc. will handle all documentation.

Ease Of Application

Our lease plan offers a simple credit application asking only for pertinent information. No financials or tax returns are required on transactions less than $75,000

Fast Response

We offer a 24-hour decision turnaround for your credit approval on most transactions.

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