Asphalt Paver

Off Lease And Repos, Updating Sales And Financing Opportunity For Construction Equipment

In today’s unstable economy, the startup and seasoned business has an unique opportunity to acquire an attractive deal for off leases and repos for commercial trucks and construction equipment. Due to a contracting economy, many lenders have excess inventories on their books that they need to put back on the street. These in-house inventories are non income producing, therefore putting pressure on the lender to make a deal with the consumer. These deals can be found in the price, the financing or a combination of both.

An off lease commercial vehicle and/or construction equipment has been returned to the lender as the lease has expired. The lessee has made a decision to return the item in lieu of exercising the buyout option. A repo has arisen due to a default of the lessee for non payment terms or a violation of the terms of the lease. Either way, the lender has taken these trucks and/or equipment back and now must recondition the items and either sell these items or re-lease them. The lender will either advertise their inventory through their internal sales force or outside professionals such as brokers to move their inventories as quick as possible. Sometimes as these inventories either sit or whatever reason isn’t moving, the lender may put these items up for auction.

For this article, the type of items we are going to identify as potential deals for the customer is the following:

Aerial Sign Truck, Above Ground Fuel Tank, Aircraft Refueler Truck, Asphalt Paver, Backhoe, Boom Truck and Lift, Bulldozer, Cement Silo, Chipper, Chipper Dump Truck, Compactor, Concrete Mixer, Concrete Pump, Crane Crawler, Cranes, Digger Derrick Truck, Drill Riggs, Drum Puller, Dump Truck, Excavator, Flat Bed Truck, Fuel Lube Truck, Garbage Containers, Garbage Truck, Grapple Boom Truck, Ground Support Equipment, Log Bobtail Trailer, Motor Grader, Mechanics Truck, Motor Scrapper, Piggyback Forklift, Refined Fuel Delivery Truck, Roofing Truck, Skid Steer Loader, Skidder Grapple, Tow Truck, Tractor-Farming, Trailers, Vacuum Tank Trucks, Sewer and Septic, Van Delivery Truck, Yellow Iron, Wheel Loader, Yard Tractor, Water Wagon,

Some of the ways the startup and/or seasoned business can locate these deals are through trade publications, surfing internet search engines, contacting lease brokers for information and speaking to lenders directly. Exellent trade publications out there would be Heavy Machinery Trader, Truck Trader and Truckpaper which have with thousands of listings available for the buyer. Usually with the available auctions, cash is due on demand or within a few business days or a banking letter of credit might suffice. There are some great deals at the auctions but one must really understand the pitfalls of not understanding the mechanics of the acquisition…

Some of the lenders in the market have advertised personal credit qualifications as low as 600, prior bankruptcy rules amended or ignored and startups welcome. Additionally, the front money to commence the lease can start as low as first payment to whatever you might able to negotiate. Some of the lenders have application only programs up to $250,000. There are no financial statements, income tax returns or bank statements required.

News Update, As this economy has weakened and the Federal Reserve is pumping money into our system to keep the financial markets stable, many lenders have excess repos on their books. This has put a tremendous strain on these lenders to maintain financial stability. These repos must be put back into their revenue stream and creates a tremendous opportunity for the startup and seasoned business to obtain financing which would not be available at the normal banking level. This opportunity must be weighed carefully by the buyer to ascertain how the economics dictate this acquisition and the time period of the financial obligation. One should consult his accountant/attorney to ascertain that the financial, tax and legal areas are covered properly in this uncertain economic time.

In conclusion, this is still a buyers market for commercial trucks, trailers, and construction equipment. Check out all the deals in the market and make sure that you have a stable income base to assume whatever debt that you may occur.

Happy hunting for your acquistion.

By: J.M Calle

Article Directory: http://www.articledashboard.com

J.M Callle has over thirty years experience in the financial field. This includes accounting and taxes, leasing, and hard asset money and commercial loans.

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