lease or buy

[marble]

What are some considerations to keep in mind when deciding whether to lease or buy equipment? I don't know too much about leasing. Is it a good option? What are some of the questions one should ask when making the deal?

[slinger]

Alberta Agriculture has published a booklet entitled 'Leasing vs. Buying Farm Machinery', which sounds like just what you are looking for. To order this publication online, point your browser to: www.agric.gov.ab.ca/forms/ordrfree.html This form has blanks for you to fill in your name and address, as well the Agdex number and title of the publication you would like to order. This particular booklet is Agdex # 825-19, and the title, as mentioned before, is 'Leasing vs. Buying Farm Machinery'. If you would prefer, you could give me a call (Darryl Slingerland @ (403)329-1212), and I could arrange to have this publication sent to you (However, it might take a little longer this way). Another reference you might want to take a look at is some tax information related to leasing. This can be viewed at: www.agric.gov.ab.ca/economic/taxation/taxman/machnry.html Hope this helps!

[gordon]

We have very good software that now calculates the best decisison based on what options you are dealing with. Send me you 'deal' and I'll calculate it and return the information. Lease is now very close in per acre cost to the buy . Tax, time and hours of use play an important part of the decisison. I just did a combine calculation for a former student of our Machinery Econ. class,- $12.64 per acre for the Buy, $12.05 per acre for the lease.It depends.

[cherynlg]

There are several reasons why people lease rather that purchase their equipment outright. However, leasing may not be right for you. These are some questions you may want to consider when making that decision. Obviously, do I have the cash? Can or do I want to be able to upgrade or add-on without difficulty? Would paying for this equipment over a period of time match my cash flow more appropriately? Is there a tax advantage to having a lease instead of purchasing? Hope this helps.