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

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.
   

Quotes are subject to change and credit approval

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