According to a U.S. Equipment Finance Market Study for , 39% of businesses surveyed who acquired new equipment opted to lease rather than buy. This is up from 17% in . This trend shows that companies increasingly turn to equipment leasing to free up cash for other financial needs.
Types of Leases: There are two main types of equipment leases: Capital Leases and Operating Leases.
Operating Lease:
An operating lease is also known as a Fair Market Value Lease. These are more like short-term rentals, allowing a company access to equipment for a shorter term with a set period, payment, interest rate, and residual value. You may choose to buy the vehicle at the end of the lease or turn it in for new equipment on renewal. This provides a lot of flexibility and improved cash flow. Additionally, the lessee can often cancel the lease with prior notice and return the vehicle before the term ends.
Capital Lease:
This type of lease is more similar to a loan. They are typically long-term and cannot be canceled by the lessee.
At the end of the lease term, the lessee purchases the vehicle for $1. This type of lease is commonly used for golf carts and UTV procurement, especially when a business plans to keep the vehicle for a long period of time.
Here are some key points about $1 buyout leases:
1. Lower Upfront Costs:
Leasing STOVs costs you just the first lease payment and additional fees to get the equipment you need for your business. If you choose to buy, this is significantly less than the full cost or down payment required for regular commercial equipment financing. Even if you have enough money to buy the equipment, leasing allows you to hang on to that cash and keep it ready for other uses or needs in your business.
With equipment leasing, you pay a fixed rate over a specific period. The interest and fees are built into the payment. This allows you to spread the cost over the vehicle usage period as an operating expense.
2. Flexibility:
Leasing provides flexibility that buying does not. Many leases will allow companies to return or buy out the equipment at the lease's conclusion. This flexibility is particularly beneficial for businesses in industries that change rapidly, making current equipment obsolete every few years.
Leasing is also a great option if your business plans to use the equipment for a predetermined amount of time. For example, if you're a construction company and need equipment just for the duration of a particular job, a lease may work better for your business.
3. Avoiding Obsolescence:
Lease terms vary from 6 months to 5 years, depending on the originator. At the end of the term, you can return the equipment to the lessor, allowing you to upgrade to new equipment or return it altogether. This reduces the chance that your company gets stuck with obsolete equipment.
4. Maintenance Costs:
Sometimes, when bundling an equipment lease with a service contract, this can make your operating expenses more predictable than if you purchased the equipment outright. Click here to learn about the commercial fleet services that ACE of Carts offers.
5. Tax Breaks:
Companies typically can deduct the entire cost of the lease payment as an operating expense, compared to just the interest paid when purchasing a vehicle. This provides an income tax break because you can deduct your leasing costs as a business expense.
6. Easier Access to Equipment:
Leasing offers an easier way to get the necessary equipment if your company&#;s credit is questionable. This is because leasing companies look at various factors when evaluating a machinery leasing application, including the length of time in business, credit scores, and cash flow and profitability.
While leasing has many advantages, it also has some potential disadvantages. These include:
Have you ever wondered why some golf carts can smoothly cruise on neighborhood streets while others are strictly confined to the greens and parks? The answer lies in the phrase: &#;Street Legal&#;. A street legal golf cart is more than just a fun, compact vehicle; it&#;s a convenient and low-impact transportation solution that complies with specific legal requirements varying from state to state.
Here are the key features at a quick glance:
Knowing these specifications is essential as it not only prevents potential fines and legal trouble, but also ensures your safety and the welfare of others on the road.
At Oyer, Macoviak and Associates, we strive to help you navigate the often-confusing legal aspects associated with making your golf cart street legal. This includes securing a competitive insurance policy that matches your specific needs from reliable insurers like Progressive Insurance, Travelers Insurance, Allstate Insurance, Safeco Insurance, and Hartford Insurance.
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One of the primary components that determine what makes a golf cart street legal is its lighting system. Ensuring your golf cart has the necessary lighting not only complies with legal requirements, but it also promotes safety by enhancing visibility.
Headlights and taillights play a crucial role in making a golf cart street legal. These lights allow other drivers to see your vehicle, particularly during nighttime or poor weather conditions, enhancing safety on the road. They also allow you to see where you&#;re going, making it easier to navigate your surroundings.
At Oyer, Macoviak and Associates, we always recommend installing durable and bright headlights and taillights on your golf cart, as we strongly believe in prioritizing safety.
The presence of turn signals is another essential feature that makes a golf cart street legal. These indicators allow you to communicate with other motorists about your intention to turn or change lanes. Without them, there&#;s a risk of misunderstanding on the road, which could lead to accidents.
Lastly, reflex reflectors installed on all corners of the golf cart are required. These reflectors are designed to reflect light back towards the source, making your golf cart visible to other vehicles, even when the headlights and taillights are off. This feature is particularly important when your vehicle is parked or stationary on a public road.
In conclusion, proper lighting is a key feature in making a golf cart street legal. Not only does it comply with legal requirements, but it also promotes safety by enhancing visibility on the road. At Oyer, Macoviak and Associates, we are committed to helping you understand these requirements and securing the best insurance coverage for your golf cart.
The second essential feature for street-legal golf carts is the implementation of necessary safety equipment. Just like any other vehicle on the road, golf carts need to be equipped with seat belts, a windshield, and mirrors to ensure the safety of all passengers and others on the road.
To ensure the safety of all passengers, seat belts are a must-have for all golf carts driven on the road. As our owner at Oyer, Macoviak and Associates, Robert Macoviak, has emphasized, &#;Seat belts are not just for personal vehicles; they are also a legal requirement for golf carts on the street.&#; It&#;s crucial for all drivers and passengers to be buckled up, and that&#;s why we offer a range of Golf Cart Seat Belts options for our clients.
Along with seat belts, a durable and shatter-resistant windshield is another essential safety feature. A windshield provides a protective barrier against any debris that might be kicked up by other vehicles on the road. It&#;s important to choose a windshield that is designed to withstand the elements, as this will help keep everyone safe during a drive. Our clients can choose between a clear or tinted shatter-resistant acrylic windshield depending on their preference and the nature of their driving conditions.
Lastly, mirrors play a pivotal role in ensuring a clear view of your surroundings while driving a golf cart on the street. The most required mirrors for on-street driving are the rearview mirror and the driver/passenger-side mirrors. These mirrors aid in safe navigation and allow for better awareness of other vehicles, pedestrians, and any potential hazards. We offer a wide range of golf cart mirrors that can be easily installed on all golf carts.
Understanding what makes a golf cart street legal is crucial for safety and compliance with the law. As part of our commitment to your safety, we at Oyer, Macoviak and Associates, can guide you on the right insurance coverage for your golf cart, whether it&#;s with Progressive Insurance, Travelers Insurance, Allstate Insurance, Safeco Insurance or Hartford Insurance. Ensuring your golf cart is street legal and adequately insured not only keeps you in line with the law but also provides peace of mind as you enjoy your ride.
Understanding and adhering to the speed and identification requirements is crucial in knowing what makes a golf cart street legal. These requirements are primarily focused on safety, ensuring that golf carts can share the road with other vehicles without posing a risk to drivers or pedestrians.
A key factor that determines the legality of a golf cart on public roads is its speed limit. Federal guidelines require a minimum top speed between 20 and 25 mph for street-legal golf carts. This speed range ensures that the golf cart can maintain a safe pace with other vehicles on the road without causing traffic congestion. However, it&#;s important to note that exceeding this speed range could potentially categorize your golf cart as a different type of vehicle, subjecting it to additional regulations.
Another essential feature for a street-legal golf cart is a 17-digit Vehicle Identification Number (VIN). Like cars and other road-legal vehicles, golf carts require a unique VIN for identification purposes. This number is the fingerprint of a vehicle, allowing for tracking of registrations, warranty claims, thefts, and recalls. Acquiring a VIN for your golf cart is a step we at Oyer, Macoviak and Associates can assist you with, ensuring your vehicle is properly documented and legal.
A speedometer is another crucial component in making a golf cart street legal. This device allows the driver to monitor their speed and ensure compliance with the set speed limits. Without a functioning speedometer, it would be challenging for the driver to accurately gauge their speed, putting them at risk of traffic violations and accidents.
In summary, complying with speed and identification requirements is vital in making your golf cart street legal. These features not only enhance safety but also facilitate proper tracking and identification of your vehicle. Whether you&#;re exploring insurance options with Progressive Insurance, Travelers Insurance, Allstate Insurance, Safeco Insurance, or Hartford Insurance, we at Oyer, Macoviak and Associates are here to guide you through the process and ensure you have the coverage you need for your street-legal golf cart.
To truly understand what makes a golf cart street legal, it&#;s important to consider the legal aspects involved. These include obtaining a title and registration for your golf cart and securing adequate insurance coverage.
Registering your golf cart is a critical step in making it street legal. This process may vary by state but involves providing essential documents such as a Manufacturer&#;s Certificate of Origin (MCO), Vehicle Identification Number (VIN), proof of insurance, and a valid driver&#;s license or ID.
In Arizona for instance, as shared on the Dirt Legal service platform, you will need to pay several fees including a title fee, plate fee, initial registration fee, and a registration fee. While the process might seem tedious, it is essential for ensuring your golf cart is legally recognized as a Low-Speed Vehicle (LSV) on public roads.
Securing insurance coverage is another crucial aspect of making your golf cart street legal. It&#;s not only about complying with the law &#; it&#;s about protecting yourself and others on the road.
As Robert Macoviak, our owner at Oyer, Macoviak and Associates, often stresses, insurance coverage provides financial protection in case of accidents resulting in property damage or personal injury.
Depending on your location and the specific insurance company, you might need to insure your golf cart as a (or the respective year of your golf cart) ASPT. This insurance should include at least $10,000 Personal Injury Protection (PIP) and $10,000 Property Damage Liability (PDL), as per the requirements in Florida, for instance.
Whether you&#;re considering insurance options with Progressive Insurance, Travelers Insurance, Allstate Insurance, Safeco Insurance, or Hartford Insurance, we at Oyer, Macoviak and Associates can help you find the best coverage for your needs.
Understanding what makes a golf cart street legal isn&#;t about adding the right features &#; it&#;s also about ensuring you have the right protections in place. We&#;re here to help you every step of the way.
Wrapping up our list of key features that make a golf cart street legal, a crucial point to bear in mind is that legal requirements may vary greatly from one jurisdiction to another. It is therefore paramount to be well-versed with the specific laws and regulations in your state or municipality.
Just as the speed limits can change as you cross from one state into another, so can the legal requirements for golf carts. Some states have communities where golf carts are a common mode of transportation on the streets, such as certain cities in Florida, Georgia, Texas, and California. However, the fact that golf carts are street-legal in one state doesn&#;t automatically mean they are street-legal in all states. It&#;s crucial to check the specific laws in your local area before taking your golf cart out on the road.
In many local jurisdictions, golf carts are classified as Low-Speed Vehicles (LSVs), which means they must comply with certain rules. One such requirement in some areas is to display a &#;Slow Moving Vehicle&#; sign when out on the road. This helps alert other drivers to your presence and speed, enhancing safety for everyone on the road.
With the rules and regulations governing golf cart use on public roads frequently changing, it&#;s critical to stay updated. Before you hit the road, ensure you have the latest information about the legal requirements in your area. Even with the proper lighting, indicators, and accessories, your golf cart may not be street legal if local laws prohibit it.
Being aware of the local laws not only ensures your safety but also helps you avoid potential fines or legal issues. It&#;s always better to be safe than sorry!
At Oyer, Macoviak and Associates, we understand the importance of keeping abreast of the latest regulations to ensure your golf cart is street legal. We are here to help you navigate the complex world of golf cart laws and insurance requirements. Don&#;t hesitate to reach out with your queries, we&#;re just a call away!
To wrap things up, let&#;s revisit what makes a golf cart street legal. These key features are essential for ensuring that your cart is not just fun to drive, but also safe and legal.
At Oyer, Macoviak and Associates, we strongly encourage you to ensure compliance with all these legal requirements for safe and legal golf cart use on the road. Adhering to these rules not only ensures your safety but also helps you avoid legal issues in the future.
Understanding what makes a golf cart street legal is not just about following the law, but also about protecting you and your loved ones. If you need help with insurance coverage for your golf cart, don&#;t hesitate to contact us. Our team of professionals, including Robert Macoviak, is always here to help you find the best coverage options for your needs.
To learn more about our insurance services, explore our website, especially our pages on auto insurance and homeowners&#; insurance. Safe driving, and happy carting!
(
President)
Robert Macoviak is the President of Oyer, Macoviak and Associates. Oyer, Macoviak and Associates is the oldest independent insurance agency in Boynton Beach and has been in business since . Oyer, Macoviak and Associates are vested members of the community who are committed to doing business face-to-face and being your insurance advocate in times of need.
For more information, please visit Street Legal Golf Cart Manufacturer.