Cat Financial | Comparison of Financial Products

Comparison of Financial Products

  Hire Purchase Finance Lease
Revolving Line of Credit
Ownership Immediate Option to return or purchase at lease-end; Flexible options include the ability to return early at the predetermined date
Equity Buildup Faster Slower None
Tax Depreciation Customer Customer N/A
Payment Higher Lower N/A
Purchase Option N/A Bargain N/A
Contract Flexibility Yes Yes Yes
Early Payoff Restrictions No No N/A
Personal Property Tax Customer pays
(varies by state)
Customer pays
(varies by state)
Additional Information
  • Customer Owns and depreciates
  • Immediate equity through down payment or trade-in
  • Quickest equity buildup through repayment
  • Customer has ownership
  • Bargain purchase option reduces payment
  • Customer may take depreciation
  • Equity buildup is slow
  • Characteristics of a loan with the lower payments of a lease
  • Access funds quickly with a simple request
  • Finance additional or replacement purchases geared to expanding or renewing your fleet
  • Customized financing offered
  • Blanket lien filing not required


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