| Cliff SEIA - 7/20/2018 08:12 I realize that, also has more hours but he will be paying $168,000 to lease a machine that I think could be bought for the same or less money.
Unless I'm not following on the number of payments & amount and the amount of the residual I think he's on the hook for a lot more than that.
300 separator hrs per yr. Repairs taxes on me, does include 3 year 750 hr powergard. 6 pmts 28000 then 35 % residual 6 months after last lease pmt.
Yes it can be turned back in but it is all based off the 35% residual. Which is $68,950. So if you turn it in and they sell it for less than that residual you are obligated to pay the difference. If it brings more that it goes to you.
6 payments of $28,000 + the $69,000 residual he is responsible for = $237,000 of total cost to own the combine at the end of the deal
I'm not sure what the point of the lease is when you're responsible for all repairs, taxes and the residual value of the machine.
There are much cheaper ways to acquire a combine that bring the same risks to the table.
Edited by Kooiker 7/20/2018 08:24
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Combine lease
