Liquidity – conserve cash in the event of unforeseen troubles
• Slow paying customers
• Payroll constraints
• Economic downturns
Use your cash for alternative Uses
• Fund projects that cannot be financed
• Build cash reserves
• Save on taxes by prepaying expenses
|
If you haven’t already thought of leasing you may want to consider the benefits.
| Sample Transaction Details |
Loan |
Lease |
| Term |
60 |
60 |
| Vehicle Cost |
105,500.00 |
105,500.00 |
| Down Payment |
10,550.00 |
|
| Securty Deposit |
|
3,600.00 |
| Amount Financed or Leased |
84,950.00 |
105,500.00 |
| Monthly Payment |
2,040.85 |
1,823.08 |
| Residual Value |
|
21,100.00 |
| Down Payment / Security Deposit |
10,550.00 |
3,600.00 |
| Total Monthly Payments |
122,451.00 |
109,384.80 |
| Residual Value |
|
21,100.00 |
| Refund of Security Deposit |
|
(3,600.00) |
| Total Paid |
133,001.00 |
130,484.80 |
| TOTAL SAVINGS |
$2,516.20 + tax benefits |
A typical down payment on a loan is 10%.
A typical security deposit on a lease is equal to 2 payments and these may be
refundable at the end of the lease! |
