Oak has been involved in European airport equipment leasing for many years, from ground handling equipment, baggage handling systems, through to de- icing equipment for planes, and runway cleaning equipment. The ability to arrange airport equipment leasing and finance throughout most of Europe will prove to be a valuable asset for our GSE customers.
As with all airport runway machinery, equipment leasing or equipment finance is normally the route that airports choose to use to acquire crucial equipment, be it fire tenders, tugs, or general GSE equipment.
Below are 5 Advantages and of Leasing GSE to help you and your business before you make any decisions regarding equipment leasing, as it’s important to choose the right solution to best suit your situation and needs.
• If you work in the GSE industry (or any industry), you’ll understand that you always want to the best machinery and equipment, so that it ultimately makes your job easier and more efficient. With technology advancing all the time, it would only seem right to lease products, machinery and equipment for this point alone to avoid being stuck with outdated equipment that you’ve bought outright and spent lots of money on.
• Another obvious advantage of leasing is that you encounter less expenses up-front and instead are able to spread the cost out over easy and affordable payments. By avoiding paying for equipment in one huge sum, it allows you to budget for the equipment over a longer period of time.
• If you choose to lease your equipment, you can claim back VAT on lease payments as well as deducting the full cost of the lease costs from taxable income.
• By leasing equipment, it offers more flexibility and options on what you could potentially get for your money. You come across a high-end piece of machinery that you never thought you could afford if you were purchasing it upfront. With leasing, however, you don’t have this mindset as you won’t have the hesitation of worrying about paying for it all upfront and therefore you may be more inclined to try something new, take a new path to potentially help your business.
• Another great advantage of leasing is that you don’t have to pay for any maintenance (providing that it’s either just general issues of wear and tear or has broken), as the company you’re leasing your equipment from is responsible for repairing/fixing the equipment.
• As you aren’t buying upfront, you’ll consequently end up spending more money as you’re paying in monthly instalments along with the fact that most leasing options require you to pay interest too.
• Another downside to leasing is that you won’t own the equipment, whether it be during or after your payments, therefore it gives you no equity. So, you won’t have the ability to sell the equipment once you no longer need it and essentially, won’t be able to make any of your money back.
• When you lease the equipment, the leasing contract you rent the equipment under usually has fixed lengths, so you may end up with the equipment for a longer (or shorter) period of time than you actually have it for. This means you’re paying for it when you don’t necessarily need it, which results in you wasting money on paying for it, as well as finding storage for it, especially if it’s a large piece of equipment and you have nowhere for it to go.
The pressure on airport infrastructure and GSE equipment will grow, as air traffic is set to double in the next 20 years and with airport equipment and GSE equipment costs rising, it is vital to acquire the latest efficient equipment, without a drain on capital expenditure, which is why we are proud to able to work with Oak Leasing to provide an affordable solution for the purchase of your GSE.
Although there are many Advantages of Leasing GSE, there are some downsides, but we think it’s a great idea, otherwise we wouldn’t offer it! It allows you and your business to access the best, up-to-date equipment to essentially make your work life easier, with no huge up-front cost!