Contrary to popular belief, there really is no voodoo involved in determining lease rates. It boils down to one, simple factor: experience. If you've taken a moment to read About Us and Our History, you already know that experience is a CT&L strength. Let us show you how our experience translates into low lease rates for your IT needs.

A lease rate is a combination of a few factors, each of which is significant in determining your monthly payment. Lack of expertise in any one area can mean that you end up paying more per month for your IT hardware. So, to minimize monthly payments for our clients, we have taken each factor and applied all of our experience. Take a moment and learn how each factor affects your lease rate:

• Upfront Equipment Cost
• Term Interest Rate
• Equipment Residual Value

Now that you're a little more familiar with how we determine a lease rate, you're probably wondering "Well, how much can I save if I lease from CT&L?" It's easy. Simply contact Nick Chlebowski, and discuss a custom quote suited to your requirements.

No matter which way you obtain a rate from CT&L, we think you'll find that it's competitive and reflective of our experience.

Upfront Equipment Cost

The Upfront Equipment Cost is a factor that's commonly overlooked as a factor that can save a client money. Too often, a Lessor blindly quotes a rate without reviewing whether or not the customer is getting a good price on the hardware. Additionally, since a monthly payment can be much more attractive than absorbing the entire purchase price, many customers fail to recognize that additional upfront savings can save them money over the Life Cycle of a lease.

We do the homework for you. CT&L makes it a point to always review the equipment costs on a quote. Many times, because of the volume of equipment we place on lease, we've found that our discounts can save our clients money on the initial purchase price. That's why we developed our Asset Services, which allow our customers to not only have one point for all their IT needs, but to save money versus their traditional equipment vendor.

To illustrate, assume the equipment in question is a network server, and that a client has a quote for this server from their traditional vendor. The price is $3,500.00. Now, assume that CT&L could supply that same hardware for $3,200.00, at roughly an 8% savings.

Let's take a look at how this affects the monthly lease rate, and the amount the client ultimately pays:

This example illustrates that saving most any amount on the upfront cost of the equipment translates into an even greater savings over the Life Cycle of the lease. And that savings becomes even more significant as the quantity of equipment increases. That means that the larger the transaction, the more you save with CT&L.

It's just a simple example of how CT&L's experience and expertise translates into savings for our clients.

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Term Interest Rate

Interest rates, over the term of a lease, can make a big difference in your monthly payments. If you're at all familiar with a mortgage, car loans or credit cards, this concept is nothing new.

However, those examples provide a stark contrast to how CT&L derives the interest rate in a lease. Since we are exclusively a Commercial Lessor, CT&L never factors those artificially high, consumer-oriented, interest rates into a lease. Our rates are based solely on our clients' credit ratings. Nothing more. No interest rate games.

Experience has shown that playing that "interest rate game" with clients only serves to make leasing less financially attractive. That's not something that benefits us, or our clients. In fact, it diminishes the benefit of equipment leasing.

Additionally, all CT&L leases utilize fixed interest rates. Floating interest rates in a lease can subject you to variations in your lease payment. That makes budget planning difficult and unpredictable.

So, CT&L endeavored to assemble a fair and responsive group or lending institutions with which we discount our leases. All understand our approach to factoring the interest rate into a lease, and how our clients need quick responses on transactions of all sizes. We've succeeded.

Want proof? Just factor the interest rate in the example above, involving the Upfront Equipment Cost. You'll see how our experience works to your advantage.

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Equipment Residual Value

The Residual Value of the equipment you wish to lease is one of the biggest factors in your monthly lease rate. However, it's a factor that most Lessors would rather not shed any light on. For CT&L, it's a factor that saves money for our clients.

Essentially, the Equipment Residual Value is a gamble a Lessor takes. When a Lessor quotes a lease rate, a large portion of that rate is determined by how much the Lessor thinks the equipment will be worth at the end of the lease. That estimated future value is a direct factor of how hard a Lessor wants to work to remarket the equipment, or how well it can recover it's estimate. An inexperienced Lessor with limited remarketing experience, or a Lessor with little desire to develop a solid remarketing plan, might only figure the scrap value for a piece of IT hardware. That shortchanges the client and means the client pays more of the equipment cost over the life of the lease. In other words, you, as the client, are paying for the Lessor's inexperience. We do it a bit differently.

From the experienced gained in remarketing millions of dollars worth of off-lease equipment over many years and market conditions, we've developed a huge network of wholesale, and more importantly, retail buyers. We've also taken the time to develop a market of International buyers where off lease equipment is considered "cutting edge."

What that boils down to is simple. CT&L can get a higher dollar value for the off-lease equipment we remarket, and it means you pay less of the total equipment cost over the life of the lease. It directly affects your monthly payment -- lowering it. That's how it's supposed to work: our experience creates value and saves you money.

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