For this example we will assume a 24% tax bracket for a typical company.

• Equipment Cost: .....................$30,000
  
• Lease Term: ............. .............60 Months
  
• Purchase Option: ..... .............10%
  
• Up Front Costs:......... .............$1,450 
  (Includes first two month's security deposit, and a one time $100 documentation fee.)
  
  
• Total Pay-out ...                       $40,500 = (60 Payments of $675)
  
• After Tax Pay-out ...                $30,780 = ($40,500 x 24% tax savings of $9,720 )
  
• Plus Buyout ...                         $3,000
  
• Total After Tax Pay-out ...       $33,780
  
• Less Cost of Equipment ...      $30,000
  
• Actual Cost of Lease ...            $33,780
  
• Divided by Lease Term of ...    60 Months
  
• Per Month Cost of Lease ...     $63
  

Question? ... If you have $30,000 to invest, could you get a return of more that $63 per month?

If the answer is Yes, then "Lease" this equipment and get the return you deserve!

Leasing vs. Cash

Let's look at this another way.

What if you paid cash for the equipment?

You would need to generate $30,000 income to pay cash for a $30,000 piece of equipment. In addition, you actually would need to generate an additional $7,200 worth of income to pay a 24% (assumed) income tax on the required income. Your total earnings needed would be $37,200.

This means to pay for a $30,000 piece of equipment, and earn enough to pay the taxes on the income, it would cost you $37,200 in pretax dollars.

Leasing Does Make Sense for Some Clients!

With leasing you make your payments with "Pre-tax dollars". That means if you spend $30,000, it would only cost you $30,000, not $37,200.

When you look at the true cost of money, including taxes, leasing could save you $3,420; that is the $7,200 you could pay in taxes minus $3,780 cost of this lease.

Could you use a $3,420 saving?

Then Leasing may be a Option for You!

Let's discuss your options... the savings can be substantial and preplanning works for you!

Click Here to Apply!