Leasing vs. Buying

3 Year | 5 Year

5-Year Lease Comparison for $35,000.00 Leasing Buying Equipment Cost $35,000.00       Equipment Cost $35,000.00       Monthly Payment $707.47       Taxes $5,250.00       PST on Payment $56.60       Total Cost $40,250.00       GST on Payment $49.52       Interest Rate 5.25%       Total Monthly Payment $813.59       Monthly Payment $764.19

Position After 5 Years Leasing Buying Total Payments ** $53,697.04       Total Payments $45,851.15       Tax Savings *(48%) $25,774.58       Interest $5,601.15       Net Cost $27,922.46       Depreciation (42.4%) $25,413.85       Buyout at 43rd Month $10.00       Total Deductible Expenses $31,015.00       Taxes of Buyout $1.50       Tax Savings *(48%) $14,887.20       Total After Tax Cost $27,933.96       Total After Tax Cost $30,963.96

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