Plant and Machinery Lease Reviews

Regular Plant and Machinery Lease Reviews ensures that owners aren’t paying too much on monthly costings and outgoings.  Analysis of leasing contracts is essential.  Paying too much on leases reduces PROFITS!  The decision of leasing new, second-hand or extending current options to the existing lease must be made and will determine profitability.

When negotiating a new lease or the continuation of an existing one, an independent assessment of current market trends will ensure that our client will be aware what the current market lease levels are for the particular asset.  Leases vary depending of the type of asset, length of lease and use of the asset.

Leases are also dependant on the current competition and availability of similar Plant, Machinery and Equipment.  Major influences to such availability, i.e. if a company who has similar type product under lease goes into insolvency then this would obviously affect the overall market of that asset.

In addition, Retail Leases are very dependent on whether the internal fit out is in place, amenities provided, the quality and size of the retail space, the quality and condition of the supermarket or mall and the availability of similar space. Details of the responsibilities of the Lessee is a major factor to ensure no unexpected expenses are discovered during the ‘Terms of the Lease’.

Agricultural Machinery, Mining Equipment and Vehicle Fleets are often best managed through lease agreements simply because of the short turnaround in life expectancy and increased amortisation.  When looking to lease one of these assets it is important to know the number of hours it has works, where it has been working, maintenance regime and type of work it has been undertaken.