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As Csharp said, if you lease you will be responsible for the full term worth of payments regardless when you pay it off.
The advantage of a lease with a $1.00 buy-out at the end is that you can write everything you pay each year off on your taxes. So if you lease for 5 years, every cent you pay is written off each year. And at the end you pay $1.00 and you own the machine free and clear.
If you buy it, no matter how much you spend in payments and interest each year, or even cash, you can only write a certain amount off as amortization. I think it is over ten or fifteen years or so that you can write off major equipment purchases.
The did change the rules lately to allow you to write off a larger amount for equipment purchases, but it was only temporary as a stimulus and I think it has ended.
Mike
If you lease from Haas, and you get a fat job that will allow you to pay the machine off early you owe only the amount left on the contrace.
With Haas (CNC Associates) you pay off earlier and only pay interest on amount remaing.
They require insurance on machine.
Other leasing companies all seemed to want collateral...didn't seem to care about the machine.
Steve, that is certainly different than any other Equipment lease I've ever heard of.
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