Financing • Leasing • Rentals

High Ground appreciates that efficient funding makes a difference. We work with world-class lenders to provide financing options for our customers. Chief among them is Terex Financial Services (TFS). High Ground Equipment works very hard to save our customers money by finding the best terms and lowest rates.

We can help you find arrange financing that best fits you!
Call 877-54CRUSH

STANDARD PLANS, NO CASH DOWN, PICK YOUR PAYMENT
TAILORED FOR NEW ENGLAND SEASONAL PROGRAMS

Zero Cash Programs • Seasonally Adjusted Payments • Installment Loans • Lease & Lease to Own

Short-term Rental Programs • Rent-to-Own Programs • Used Equipment Financing

Basic Definitions for Common Finance Options:

Conventional Loan, Installment Agreement

Structure: A fixed monthly payment over a defined term. Not unlike a mortgage.

Benefits:
- Extended terms: an installment loan term can be longer than a lease.
- Certainty: at the end of the term, there is no residual balance to pay.
- Good for long-term assets: Ideal for equipment with a long useful life where ownership is desired.
- Tax treatment: Often qualifies for accelerated depreciation (subject to IRS rules).

Capital Lease ($1 Buyout)

Structure: Essentially a financing agreement — the lessee makes fixed payments and automatically owns the equipment at lease end for a nominal $1.

Benefits:
- Ownership certainty: Treated like a loan — you’re effectively buying the equipment over time.
- Tax benefits: The business can usually claim depreciation and interest expense (rather than deducting lease payments).
- Good for long-term assets: Ideal for equipment with a long useful life where ownership is desired.
- Simplicity: No uncertainty about residual value or end-of-term negotiations.

Fixed Purchase Option Lease

Structure: At the end of the lease, the lessee can buy the equipment for a predetermined price (e.g., 30% of original cost), regardless of actual market value.

Benefits:
- Predictability: You know the exact buyout cost at the start, which helps with budgeting and planning.
- Balanced payments: Monthly costs are similar to, or slightly higher than, FMV leases but lower than a $1 buyout (Capital) lease.
- End-of-term flexibility: If equipment is still valuable, you can purchase it for less than market price; if not, you can walk away.
- Useful for assets with moderate life spans where the business may or may not want to own long-term.

Fair Market Value Lease / Operating Lease

Structure: At the end of the lease term, the lessee can either purchase the equipment for its fair market value, return it, or sometimes renew the lease.

Benefits:
- Lower monthly payments compared to purchase-option leases, since the residual value is built into the structure.
- Flexibility at end of term: return outdated equipment, upgrade, or buy it at FMV.
- Tax treatment: Often considered an operating expense, so lease payments may be fully deductible while keeping the loan obligation off your balance sheet (subject to IRS rules).

About Section 179 of the IRS Tax Code

Section 179 of the IRS Tax Code is a powerful tool for businesses to accelerate tax deductions on equipment, but the way it applies can differ between standard loan financing and leasing. Here’s the breakdown:

Section 179 Overview

Section 179 allows businesses to deduct the full purchase price of qualifying equipment (up to annual limits) in the year the equipment is placed in service, rather than depreciating it over time.
For 2025, the deduction limit is $1,220,000 with a phase-out threshold of $3,050,000 in total equipment purchases (indexed annually).

1. Standard Loan Financing

Ownership: You are the owner of the equipment, with the lender holding a lien until the loan is paid off.
Section 179 Eligibility: Since you own the asset, you can generally claim the full Section 179 deduction in the year the equipment is placed in service, even though you’ll be paying it off over time.
Cash Flow Benefit: You get the tax deduction up front, but spread the equipment payments over several years. This can create a strong cash flow advantage.

Example:

You finance a $500,000 machine with a 5-year loan.
Year 1: You can deduct the full $500,000 (subject to limits) under Section 179, even though your out-of-pocket payments in year one might only be ~$100,000.

2. Leasing

Leases fall into two main categories, and treatment under Section 179 depends on which you choose:

a. Capital Lease / $1 Buyout Lease

Treated essentially the same as a loan.
You are considered the owner of the equipment for tax purposes.
Section 179 Eligibility: Full deduction applies in year one.
Cash Flow Benefit: Like loans, you deduct the entire cost while making smaller payments over the lease term.

b. True/Operating Lease (Fair Market Value Lease)

You do not own the equipment; you’re just renting it.
Payments are generally deductible as an operating expense, but Section 179 usually does not apply because you do not own the asset.
Instead, the tax benefit comes from deducting the lease/rent payments as they’re made.

Key Difference: Loan vs. Lease under Section 179

Loan or Capital Lease ($1 Buyout) → You’re treated as the owner → Full Section 179 deduction upfront.
Operating/True Lease (FMV lease) → You’re treated as a renter → No Section 179, but lease payments are deductible as an expense over time.

👉 In short: if maximizing Section 179 deductions is your goal, standard financing or a capital lease is usually the way to go. If preserving flexibility and keeping equipment off your balance sheet is more important, then an operating lease may be better.