POS Leasing

[Trey]

Does anyone know of any POS companies that have lease to own options?

 

[paul7979]

Nearly every one of them work with equipment leasing companies. Keep in mind when they quote you a lease rate that it is not what it seems. A 7% lease rate and a 7% interest loan are not the same.Since you do not pay down any principal on the lease, you pay the interest rate on the whole amount borrowed for the life of the lease. I found that the lease offers I got were more similar to the interest I would get from a credit card.

 

[MrHowie]

Most have some sort of options, POS leasing is pretty common. I honestly would prefer to buy, but financial situations don’t always allow for that. Typically you can deduct the lease expenses.

 

[paul7979]

MrHowie:

Typically you can deduct the lease expenses.

That’s an advantage that a leasing company will tell you but what they don’t tell you is that you can’t depreciate it on your taxes.

 

[Daddio]

paul7979:

MrHowie:

Typically you can deduct the lease expenses.

That’s an advantage that a leasing company will tell you but what they don’t tell you is that you can’t depreciate it on your taxes.

The difference when it comes to taxes between a lease write-off and depreciation typically is the lease payment is 100% written off as it is paid out and depreciation is a declining amount based on the remaining value of the asset. This could be 3 to 5 years in some cases on computer equipment. In my tax jurisdiction they would likely be the same since computer equipment and software have such a short life expectancy in the eyes of the tax department.