Coach West understands the business of owning high-dollar equipment and knows the importance of procuring this equipment in a fiscally-wise manner. There are several financial means by which a business can acquire vehicles and the consultants at Heritage Coach Company can guide you through the pros and cons of these various options.

The information on this page is solely intended as a general guideline to the different types of leases / purchases we deal with on a daily basis. We do not claim that this information is 100% infallible or updated for current / changing market trends. Please consult your accountant or another financial professional for final analysis of your investment.

Straight Lease

  • Also called “walkaway lease” or “traditional lease”
  • Typical term is 60 months (but can be different)
  • At end of term, customer returns car back to dealer in good condition and has no further responsibility (car must be within mileage and condition limits set forth in agreement)
  • Customer is only paying for a “portion” of the car; at lease end, the car still has “life” (value) left and can be sold again; therefore, customer enjoys lower payments during the term because he/she is not paying for 100% of the vehicle
  • 100% of the lease payments can be expensed – written against your taxes
  • Oftentimes, lease rates are a little better than a straight purchase rate because under leasing laws, the bank can depreciate the car as an asset and can therefore give a more attractive lease rate
  • Customer cannot depreciate the car since it is not an asset on the customer’s books
  • Ideally, this works well when a customer does not want to keep the car for an extended amount of time (wants to keep more current body style vehicles)

Lease-Purchase

  • Also called “dollar buyout” lease
  • Typical term is 60 months (but can be different)
  • At end of term, the customer owns the car 100%
  • This is virtually identical to financing the car through a local bank
  • Customer is paying for the entire full value of the car over the term, so the payments are higher than a straight lease (but customer will own the car at the end)
  • Customer is able to depreciate the vehicle as an asset on the company’s books
  • Payments cannot be expensed because the car is an asset on the company’s books
  • Typically, these rates are a little higher than a straight lease because the bank cannot depreciate the car as an asset
  • Ideally, this works well when a customer wants to keep the car for many years