Taking a look at what some of the analysts are saying, it appears that the consensus is that the period of near-zero interest rates is not likely to return anytime soon. Going back to 1870, or roughly 60% of the time, the U.S. Treasury yields have been in the 3.5% to 5.5% range.
Fed Chair Jerome Powell left the Fed funds rate unchanged at the January Federal Open Market Committee, and mentioned that the committee would need more evidence that inflation was slowing before they would lower rates. Many economists predicted a lowering of rates in May, but after these comments, it may not be until June before we see any lowering of rates.
Some economists are predicting a 100 basis point (or 1%) lowering of rates for the year.
Since these estimates depend on so many factors, it makes sense to analyze your own specific situation, and not wait for rates to come down before deciding to finance new or used equipment. In reality, in the case of financing a $100k piece of equipment, the difference in the monthly payment at 9% and 8% (for a 5-year term) is only $46!
If the equipment you intend to finance can generate additional income for you and expand your market share, don’t let the economic analysts make the decision for you!
Here at Acceptance Leasing and Financing Service, we offer a number of financing programs that can make the process easier on your budget and streamlined to fit your particular situation. For example, you could have smaller monthly payments at first in case there is a lag in the delivery date of your equipment. Or, choose a program that is “application only” so the financial paperwork required is at a minimum. We’ll work with you to make the best decision for you.
Give us a call at 412 262-3225 to learn how we can help.
We are Acceptance Leasing and Financing Service, Inc. We are in our 32nd year of business in 2024. Established in 1992, we pride ourselves on our Certified Leasing and Financing Professional designation. We are a member of SBCA and a frequent attendee of the BCMC tradeshows. We can provide financing for any new and, regardless of age, used equipment.