Financing Advantages


Tax Advantages
No Pre-Payment Penalties
Build Equity
Exclusive Ownership
Lower Insurance Costs
No Additional Sales Tax Implications
No Mileage Limitations
No Excessive Wear & Tear Clause
One Stop Financing
Ease Of Application
Fast Response


Tax Advantages
Purchasing the equipment with a finance program may allow you to expense the cost of the equipment in the year in which the equipment is placed in service under IRS Section 179 of the tax code. The maximum IRS Section 179 deduction, as adjusted for inflation, is $250,000. The dollar limitation may be adjusted for inflation in future tax years. Depreciation and interest expense are tax-deductible expenses over the IRS useful life of the equipment and life of the loan, respectively. Please contact your tax advisor.


No Pre-Payment Penalties
A loan allows you to pay off the contract at any time, without prepayment penalties, giving you full ownership and the right to sell your equipment.


Build Equity
As loan payments are made, you will build an equity position in the equipment. This may be beneficial if you plan to keep the equipment longer than the financing term. This equity may be used as collateral on other loans.


Exclusive Ownership
Upon the payoff of the loan, the vehicle is yours to keep or trade-in on your next vehicle rather than turning in at the end of a lease.


Lower Insurance Costs
Your insurance costs may be lower with a loan as the rates usually drop as the vehicle gets older whereas a leasing company may impose conditions keeping premiums higher. If the car is stolen or totaled, you settle with the insurance company, but still must pay the full loan amount. With a lease, if the car is stolen or totaled, you must pay the leasing company its cash value, plus any past due payments or charges.


No Additional Sales Tax Implications
With a loan, in most states, sales tax in paid in advance with no further sales tax implications to you as the owner of the equipment. With a lease, if you purchase the vehicle at the end of the lease term, additional sales tax may be due on the purchase price in some states.


No Mileage Limitations
As you own the vehicle, there are no mileage limitations with a loan. With a lease, you may be limited to a fixed number of miles per year. Exceeding this limit will incur excess mileage charges, usually of 15 cents per mile adding additional cost to a lease.


No Excessive Wear & Tear Clause
A loan has no excessive wear and tear clause. With a lease, most contracts limit reasonable wear and tear during the term of the lease and you will be charged for exceeding those limits when you turn in the vehicle.


One Stop Financing
All your financing is handled by one source. Your finance specialist at Paramount Financial will handle all documentation.


Ease Of Application
Our finance plan offers a simple credit application asking only for pertinent information. No financials or tax returns are required on transactions less than $75,000.


Fast Response
We offer a 24-hour decision turnaround for your credit approval on most transactions.


Paramount Financial P.O. Box 426, New Hampton, IA 50659 *(641) 394-5808 * Fax: (641) 394-5706 * Email:info@goparamount.com