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  1. #1
    Bronze Lounger
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    Rent cv Purchase Template

    I am looking for a spreadsheet template that will enable me to determine whether it is preferable to purchase computer equipment for cash or to rent computer equipment

    Your assistance will be most appreciated

  2. #2
    Super Moderator RetiredGeek's Avatar
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    Howard,

    Let me see if I can remember my Accounting training, I'm a little rusty. First off let me say that there are a lot of variables to consider here and trying to find a prebuilt solution that takes into consideration those variables that apply to you and leaves out those that don't won't be easy.
    1. Probably the biggest consideration is TAXES. If you can write off the entire cost of the Rent/Lease it will have a bigger direct effect on your bottom line vs depreciation unless of course the total purchase price is under the 179 write off limit in which case you can take it all in the first year, consult your tax accountant..
    2. How often do you usually replace your computers? If you keep them till they drop renting probablly isn't a good idea since most rental/lease agreements are designed to return the lessors money as fast as possible. One of the key factors to consider is the term and the residual value used to calculate the rent/lease amount.
    3. Does the rental/lease agreement include maintenance/repair/replacement should the equipment fail before the end of the lease and how fast will they get you back up and running.
    4. How many machines are you looking at? If there are a lot you can probablly negotiate a good discount directly from a major manufacturer like Dell.

    Ok, that's all I can think of at the moment but I know there are more considerations, I'm sure others will add theirs, so you can see what I meant by my first statement.

    Good Luck!
    May the Forces of good computing be with you!

    RG

    PowerShell & VBA Rule!

    My Systems: Desktop Specs
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  3. #3
    Bronze Lounger
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    Thanks for the input, this is much appreciated

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