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Lease Benefits


Leasing vs. Buying

3 Year | 5 Year

3-Year Lease Comparison for $35,000.00
Leasing Buying
Equipment Cost
$35,000.00      
Equipment Cost
$35,000.00      
Monthly Payment
$974.30      
Taxes
$5,250.00      
PST on Payment
$77.94      
Total Cost
$40,250.00      
GST on Payment
$68.20      
Interest Rate
5.25%      
Total Monthly Payment
$68.20      
Monthly Payment
$1,210.85      

Position After 3 Years
Leasing Buying
Total Payments **
$48,179.30      
Total Payments
$43,590.66      
Tax Savings *(48%)
$23,126.06      
Interest
$3,340.66      
Net Cost
$25,053.24      
Depreciation (42.4%)
$17,066.00      
Buyout at 43rd Month
$10.00      
Total Deductible Expenses
$20,406.66      
Taxes of Buyout
$1.50      
Tax Savings *(48%)
$9,795.20      
Total After Tax Cost
$25,064.74      
Total After Tax Cost
$33,795.46      

 

After Tax Benefit of Leasing

After Tax Cost of Purchasing:
$33,795.46
After Tax Cost of Leasing:
$25,064.74
 
Cash Savings After 3 Years:
$8,730.73

 

 


   

Actual cost of leasing is less than borrowing due to:

  1. No need to finance PST and GST as it is added to monthly payment.
  2. Lease payment is 100% tax deductible. (*An advantage of 48% write off if you are in the top marginal bracket)
  3. Only the interest portion of the loan is tax deductible.
  4. It takes approximately 10 years to fully write-off equipment through depreciation.
** 43 payments - lease is stretched an additional 7 months to a $10.00 buyout - very advantageous!

Quotes are subject to change and credit approval


For more information, please contact your Henry Schein Consultant:
Phone: 1-800-668-5558