Lease Questions

What is a lease?
A lease is an agreement to pay a specific payment over an agreed to schedule of time in exchange for the usage of equipment. A lease allows for the option of the purchase of the equipment at the end of the agreement should the lessee desire to purchase the equipment outright.

What are my options when my lease matures?
Return the equipment to the dealership
Continue leasing the equipment (subject to credit approval)
Purchase the equipment
Finance the equipment on an installment loan (subject to credit approval)

We will advise you by mail of your lease end options prior to the lease maturity date. You will be asked to indicate by return mail which option you intend to exercise.

I am tax exempt. Why am I being billed for taxes on my invoices?
Provide a copy of your tax exemption certificate and a request to correct your account to AGCO FINANCE. Your next invoice should reflect any applicable changes.

The tax rate for my area has changed but my invoice still shows my old tax amount. How do I get my account corrected?
Contact us so that we can make any adjustments to your account.

The tax amount on my invoice is wrong. How do I get this corrected?
Contact us so that we can make any adjustments to your account.

What is an excess Metered Unit of Use?
The number of hours the equipment is used beyond the number of hours stated on the Lease Agreement.

What is Rate Per Excess Unit?
The fee assessed for Excess Metered Unit of Use.

I recently made a payment on my lease. How do I find out the principal and interest breakdown of that payment?
A lease payment is a flat amount paid to the lessor for the use of the equipment. There is no principal portion and no interest portion; it is simply a rental payment. Consult your tax advisor if additional information is needed.

Is there an advantage to making a payment in advance of the due date?
No, the payment amount is due by the specified date but there is no advantage to paying early.

What is Municipal Leasing?
It is a tax-exempt lease that is marketed in the U.S. to local, state and federal government agencies. Also, an organization that is exempt from federal income tax may qualify for this type of lease.

Benefits to the Tax-Exempt entity:

Low rates compared to general obligation bonds
*Benefit of lease payment interest being tax exempt is passed to lessee
No long-term debt
*Subject to appropriation of funds
*Not subject to voter approval
*Payment and term structures around budgetary requirements
*A quick and easy form of financing
*Unlike bond financing, no significant fees required