Sinclair Dental

Lease vs Bank Loan

3 Year | 5 Year

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

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