3 Year Lease Comparison of: $50,000 |
| Lease |
|
Bank Loan |
| Equipment Cost |
|
$50,000.00 |
|
Equipment Cost |
|
$50,000.00 |
| |
|
|
|
Taxes |
12% |
$6,000.00 |
| Monthly Payment |
|
$1,601.00 |
|
Total Cost |
|
$56,000.00 |
| Taxes |
12% |
$192.12 |
|
Interest Rate |
|
6.50% |
| Total Monthly Payment |
|
$1,793.12 |
|
Total Monthly Payment |
|
$1,716.34 |
Position After 3 Years |
| ** Total Payments |
|
$64,552.32 |
|
Total Payments |
|
$61,788.39 |
| *Tax Savings (45%) |
|
$30,985.11 |
|
Interest |
|
$5,788.39 |
| Net Cost |
|
$33,567.21 |
|
Depreciation (42.4%) |
|
$23,744.00 |
| Buyout at 36th Month |
|
$1.00 |
|
Total Deductible Expenses |
|
$29,532.39 |
| Taxes of Buyout |
12% |
$0.12 |
|
*Tax Savings (48%) |
|
$14,175.55 |
| Total After Tax Cost |
|
$33,568.33 |
|
Total After Tax Cost |
|
$47,612.84 |
After Tax Benefit of Leasing |
After Tax Cost of Bank Loan:
After Tax Cost of Leasing:
Cash Savings After 3 Years:
|
|
$47,612.84
$33,568.33
$14,044.51
|
Actual cost of leasing is less than borrowing due to the following reasons:
1. The chart above is a BC customer leasing example.
2. No need to finance HST and applicable provincial taxes as it is added to monthly payment.
3. Lease payment is 100% tax deductible. (* An advantage of 45% write-off if you are in the top marginal bracket)
4. Only the interest portion of the loan is tax deductible.
5. It takes approximately 10 years to fully write-off equipment through depreciation.
** 36 payments with an additional $1.00 buyout - very advantageous!
Quotes are subject to change and credit approval.
For more information, please contact Glenn Kay:
Phone: 905-740-2033 or 1-800-663-7393 (ext. 2033)
Email: gkay@sinclairdental.com
5 Year Lease Comparison of: $100,000.00 |
| Lease |
|
Bank Loan |
| Equipment Cost |
|
$100,000.00 |
|
Equipment Cost |
|
$100,000.00 |
| |
|
|
|
Taxes |
12% |
$12,000.00 |
| Monthly Payment |
|
$2,031.00 |
|
Total Cost |
|
$112,000.00 |
| Taxes |
12% |
$243.72 |
|
Interest Rate |
|
6.50% |
| Total Monthly Payment |
|
$2,274.72 |
|
Total Monthly Payment |
|
$2,191.41 |
Position After 5 Years |
| ** Total Payments |
|
$136,483.20 |
|
Total Payments |
|
$131,484.52 |
| *Tax Savings (45%) |
|
$65,511.94 |
|
Interest |
|
$19,484.52 |
| Net Cost |
|
$70,971.26 |
|
Depreciation (63.14%) |
|
$70,716.80 |
| Buyout at 60th Month |
|
$1.00 |
|
Total Deductible Expenses |
|
$90,201.32 |
| Taxes of Buyout |
12% |
$0.12 |
|
*Tax Savings (48%) |
|
$43,296.63 |
| Total After Tax Cost |
|
$70,972.38 |
|
Total After Tax Cost |
|
$88,187.88 |
After Tax Benefit of Leasing |
After Tax Cost of Bank Loan:
After Tax Cost of Leasing:
Cash Savings After 5 Years:
|
|
$88,187.88
$70,972.38
$17,215.50
|
Actual cost of leasing is less than borrowing due to the following reasons:
1. The chart above is a BC customer leasing example.
2. No need to finance HST and applicable provincial taxes as it is added to monthly payment.
3. Lease payment is 100% tax deductible. (* An advantage of 45% write-off if you are in the top marginal bracket)
4. Only the interest portion of the loan is tax deductible.
5. It takes approximately 10 years to fully write-off equipment through depreciation.
** 60 payments with an additional $1.00 buyout - very advantageous!
Quotes are subject to change and credit approval.
For more information, please contact Glenn Kay:
Phone: 905-740-2033 or 1-800-663-7393 (ext. 2033)
Email: gkay@sinclairdental.com
|
