|
| I would say... it all depends on what the deal is... and the deals change all the time. Here, in terms of a business, the lease is a direct expense... so depending on the situation of the leasing company... it may be advantageous to buy the item, collect the investment tax credit, and lease the vehicle for little more than cost. I've had things leases on 1% deals before, for 5 years... and buy it for the residual or cut it loose. If you maximised the amount of hours use and it was in good condition on return it was probably just as well to cut it loose. If the hours weren't up, probably buy it... or if it was way over the hours, buy it. That way as the lessee you got to expense all of those payments monthly, then buy a depreciated machine at the end.
Then other times it makes more sense to buy outright. All depends on the rates.
Rod | |
|
Why lease a vehicle?
