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Leasing question
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Posted 11/27/2012 07:38 (#2719006)
Subject: Leasing question

I have seen the proof that a vehicle lease is a terrible waste of money, time and time again. You never own it, and the $$ gets sucked out of you hands month after month after month--$$ that could be MAKING MONEY if invested in the business. And the "payments" continue forever for most people, they don't do the buy-out, they just sign up to have $$ sucked out of their hands again and again.

Now I read on here that people lease shops and bins-permanent structures-- I don't get it. Could someone SHOW ME IN DETAIL the advantage?

Like a comparison in detail of the total cost of"ownership" over the life of the asset?

For instance: Purchase- cost, $100,000. Down payment, 25,000 Opportunity cost of the down payment, 4%. Annual payment, interest rate, annual income taxes pertinent to this investment, real estate taxes, insurance, upkeep, etc, etc, = total annualized cost.

Lease- above costs plus the buy-out at the end or the cost of tearing it down and removing it/selling it. I assume there has to be some paperwork shuffled (and the shuffler wants paid) to build something belonging to someone else on your property.

I would appreciate a penny-to penny comparison of the TOTAL COST OF "OWNERSHIP", if someone can do it.

I know leasing a vehicle is a terrible waste of $$, I'm wondering what might make a permanent structure any different. On thing that looks better than a vehicle lease is that you can lease from some lenders that you already might do business with, like Farm Credit, so a third party isn't involved taking their cut--but I would think there would still be "extra" fees to pay.

I'm not interested in what the leasing "salesman" tells you, but an actual spreadsheet=type example of total costs after the buyout, including factoring in a discount rate/NPV of all $$ involved.

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