Leasing vs. Buying - PowerPoint PPT Presentation

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Leasing vs. Buying

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Leasing vs. Buying Service Associate Member of Illinois ASBO Overview Introduction of Leasing Presenter Jason Marquardt Director of Sales American Capital (630) 512 ... – PowerPoint PPT presentation

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Title: Leasing vs. Buying


1
Leasing vs. Buying
Service Associate Member of Illinois ASBO
2
Overview
  • Introduction
  • Leasing Basics
  • Leasing Benefits
  • Leasing Programs
  • Leasing Process
  • Success Stories
  • When to Lease When to Buy

3
Introduction of Leasing Presenter
  • Jason Marquardt
  • Director of Sales
  • American Capital
  • (630) 512 - 0066 x118
  • jmarquardt_at_americancapital1.com


4
What is a lease?
  • 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.

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
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