1 / 11

Leasing vs. Buying

Leasing vs. Buying. Service Associate Member of Illinois ASBO. Introduction Leasing Basics Leasing Benefits Leasing Programs Leasing Process Success Stories When to Lease & When to Buy. Overview. Jason Marquardt Director of Sales American Capital

keitha
Download Presentation

Leasing vs. Buying

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Leasing vs. Buying Service Associate Member of Illinois ASBO

  2. Introduction Leasing Basics Leasing Benefits Leasing Programs Leasing Process Success Stories When to Lease & When to Buy Overview

  3. Jason Marquardt Director of Sales American Capital (630) 512 - 0066 x118 jmarquardt@americancapital1.com Introduction of Leasing Presenter

  4. By definition, a lease is a contract by which one acquires equipment for a specified period of time for a specified rent paid to the lessor. For Schools, a lease is a way to acquire and/or finance equipment without voter approval. Leasing does not constitute public debt. What is a lease?

  5. What can be leased? • Computer Hardware • Software • Network Equipment • Printers & Copiers • Telephone Systems • And Much More!

  6. What are the benefits? • Conservation of Capital (100% Financing) • Consistent Budget • Avoid Technology Obsolescence • Minimizes break/fix time • Reduces user/teacher frustration • Lowest Cost of Funds • Disposal issues eliminated • Asset Management/Tracking

  7. What type of leaseprograms are available? • Fair Market Value • Lowest Cost of Funds • Flexible end of lease options • Ideal in setting up an equipment replacement program • $1 Purchase Option • Often a tax-exempt lease • Fixed ownership at the end of the lease • Ideal for infrastructure or software projects.

  8. Leasing Process • Obtain planning costs • Select equipment supplier & lessor • Board approval • Documentation • Equipment ordering & delivery • Acceptance and Lease Commencement

  9. Success Stories • Local K-12 School District • Challenge: Technology obsolescence and increasing technology staff costs • Solution: 3 year refresh program • Benefits: Less staff time spent on break-fix work. Students and Teachers no longer dealing with obsolete equipment.

  10. Success Stories • Local K-12 School District • Challenge: Large technology acquisition needed on a limited budget • Solution: 5 year tax-exempt lease • Benefits: Low payments spread out over 5 years and structured to keep the technology budget level

  11. When to Lease & When to Buy • When to Lease • Desire consistent budget • Desire to conserve capital • Desire to maintain current technology • When to Buy • Desire to self manage technology refreshment cycle • Excess capital available to spend

More Related