Lesson 2: Why Lease Railcars?

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Shippers seek railcar leases in order to move bulk or manufactured products.

There are a variety of reasons that a company may choose to lease, rather than buy railcars. Shippers may face challenges in attempting to purchase railcars due to lack of capital or credit and thus may find they have no alternative to leasing equipment. Leasing rather than purchasing equipment eliminates risk factors associated with ownership, as well as allowing for greater cash flow by reducing capital requirements.

Depending on the type of lease chosen, the lessor may assume the responsibility of maintenance and repair of the leased railcars, thus freeing the lessee from these logistical complications.

Leasing railcars provides lessees control over their own car supply.