Canadian business equipment · November 1, 2026
The lowest monthly payment may not be the lowest total cost.
Equipment financing versus leasing is a practical choice for a business buying a truck, trailer, machine or other asset. Both can spread payments over time, but ownership, end-of-term obligations and total cost depend on the written agreement. This checklist helps you compare actual offers before you sign.
Equipment loan versus lease: what changes?
| Question | Equipment loan | Equipment lease |
|---|---|---|
| Who owns the asset? | The borrower typically buys it, subject to the lender’s security interest. | The lessor generally owns it during the term; purchase options vary. |
| What happens at the end? | The loan ends when all required amounts are paid and security is discharged. | You may return, renew or buy the asset, depending on the contract. |
| What must you compare? | Rate, fees, term, total payments and prepayment terms. | All payments, fees, residual or buyout, return conditions and early-exit terms. |
A lease is not automatically cheaper or more flexible. Ask the provider to explain exactly when title can transfer and what you owe if you keep, return or sell the asset.
Compare the total cost, not just the payment
Request written quotes for the same equipment price, down payment and term. Then work through these questions:
- Upfront cost: What deposit, first payment, documentation fee or tax is due at signing?
- All scheduled payments: What is each payment, how many are there and when do they begin?
- End-of-term amount: Is there a residual, balloon payment or purchase option? What happens if you do not buy the equipment?
- Insurance and upkeep: Who must insure, service and repair the equipment, and what coverage does the agreement require?
- Early exit: What would it cost to pay off a loan or terminate a lease before the end of the term?
- Security and guarantees: What assets secure the agreement, and is a personal guarantee required?
- Total amount paid: Add upfront amounts, all scheduled payments, any buyout and fees. Compare this with the equipment’s expected value and useful life.
The Government of Canada’s borrowing checklist also encourages borrowers to ask about the full cost of a loan, including interest. For tax treatment, the Canada Revenue Agency’s leasing guidance shows that the result can depend on how the agreement is structured; have an accountant review a significant purchase.
When might a loan or lease fit?
A loan may fit when you intend to keep equipment for many years and want a clear path to owning it after repayment. A lease may fit when the asset will need regular replacement or when a written payment structure suits seasonal cash flow. Neither choice should rest on a generic claim about tax savings or a lower monthly figure. Ask what the agreement will cost over the period you expect to use the asset.
Our guide to the benefits and costs of equipment financing explains the broader business case. If you are comparing a vehicle purchase with cash, see financing a car versus paying cash; if you are applying for a vehicle loan, read our car loan preparation guide.
Considering Coast Capital Auto & Equipment Finance?
Coast Capital Savings advertises both loan and lease structures for business equipment. Its page says the equipment financing products are offered by Coast Capital Auto & Equipment Finance Ltd. and Coast Capital Equipment Leasing Ltd. under the Coast Capital Auto & Equipment Finance name. Ask which legal entity will sign your agreement and compare its written terms with at least one alternative quote.
Before you commit: Read our Coast Capital Auto & Equipment Finance warning and reviews. That page separates a reported employment standards finding involving the finance business from public reviews of the broader Coast Capital Savings group. Those sources are context for due diligence, not proof that every loan or lease has a problem.
If the asset is a financed vehicle, also check the insurance requirements in your agreement. Our Alberta auto insurance and car-loan guide explains why a lender may require collision or comprehensive coverage even though those coverages are not generally required by provincial law.
Information current as of November 1, 2026. Product terms and tax treatment depend on the signed agreement and your circumstances.