ÿþ<HTML> <HEAD> <TITLE>Equipment Buy vs. Lease</TITLE> <META HTTP-EQUIV="Content-Type" CONTENT="text/html; charset=iso8859-1"> <META NAME="description" CONTENT="Financial Calculators, ©1998-2010 KJE Computer Solutions, LLC. For more information please see http://www.dinkytown.net"> <STYLE> <!-- BODY, TABLE, TD, TH, UL, OL, DD, DL, P, BR { font-family: helvetica, arial, sans-serif; font-size: 10pt; } H1 { font-family: helvetica, arial, sans-serif; font-size: 13pt; font-weight: bold; } DT { font-family: helvetica, arial, sans-serif; font-size: 10pt; font-weight: bold; } P.footer { font-family: helvetica, arial, sans-serif; font-size: 9pt; } DIV.large { font-family: helvetica, arial, sans-serif; font-size: 13pt; font-weight: bold; } --> </STYLE> </HEAD> <!-- Financial Calculators, ©1998-2008 KJE Computer Solutions, LLC. 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For more information please see: <A HREF="http://www.dinkytown.net">http://www.dinkytown.net</A> --> <H1>Buy or Lease?</H1><P>Should you lease or buy? Use this calculator to find out! We calculate monthly payments and your total net cost. By comparing these amounts, you can determine which is the better value for you. <P> <CENTER> <!--[if IE]><object name="calculator" classid="clsid:8AD9C840-044E-11D1-B3E9-00805F499D93" codebase="http://java.sun.com/update/1.6.0/jinstall-6-windows-i586.cab#Version=1,4,0,0" height="400" width="565"><param name="code" value="BuyvsLease" /><param name="archive" value="dinkytown.jar" /> <P style="font-size:1px; color: #ffffff" line-height: 1px><![endif]--><![if !IE]><P style="font-size:1px; color: #ffffff" line-height: 1px><![endif]></P><![if !IE]><APPLET name="calculator" code="BuyvsLease.class" align="baseline" WIDTH="565" HEIGHT="400" archive="dinkytown.jar"><![endif]> <PARAM name="TERM" value="24"> <PARAM name="LOAN_TERM" value="60"> <PARAM name="LEASE_INTEREST" value="8.0"> <PARAM name="RESIDUAL_PERCENT" value="60"> <PARAM name="SECURITY_DEPOSIT" value="500.00"> <PARAM name="OTHER_FEES_LEASE" value="100"> <PARAM name="CAR_PRICE" value="20000.00"> <PARAM name="INTEREST_RATE" value="8.0"> <PARAM name="DOWN_PAYMENT" value="1000.00"> <PARAM name="OTHER_FEES_BUY" value="0"> <PARAM name="SALES_TAX_RATE" value="7.0"> <PARAM name="RATE_OF_DEPRECIATION" value="20"> <PARAM name="INVESTMENT_ROR" value="8"> <PARAM name="MSG_LABEL8" value="Market value of equipment"> <!--CUSTOM PARAMETERS--> <PARAM name="TEXT_FOR_REPORT" value="<HTML> <HEAD> <TITLE>Equipment Buy vs. Lease</TITLE> <META HTTP-EQUIV='Content-Type' CONTENT='text/html; charset=iso8859-1'> <META NAME='description' CONTENT='Financial Calculators, &QCPQ;1998-2010 KJE Computer Solutions, LLC. For more information please see http://www.dinkytown.net'> <STYLE> <!-- BODY, TABLE, TD, TH, UL, OL, DD, DL, P, BR { font-family: helvetica, arial, sans-serif; font-size: 10pt; } H1 { font-family: helvetica, arial, sans-serif; font-size: 13pt; font-weight: bold; } DT { font-family: helvetica, arial, sans-serif; font-size: 10pt; font-weight: bold; } P.footer { font-family: helvetica, arial, sans-serif; font-size: 9pt; } DIV.large { font-family: helvetica, arial, sans-serif; font-size: 13pt; font-weight: bold; } --> </STYLE> </HEAD> <BODY bgcolor='#FFFFFF' LINK='#003399' VLINK='#666666' BGCOLOR='#FFFFFF'> <CENTER><table border=0 bgcolor='#000000' width=468 cellspacing=1 cellpadding=0><tr><td width='100%'><table bgcolor='#FFFFDD' border=0 width=468 cellspacing=1 cellpadding=5><tr><td width='100%' align=center valign=middle><DIV class=large>Buy or Lease Results</DIV></td></tr></table></TD></TR></TABLE></CENTER> <H1>Your lease payment would be MONTHLY_PAYMENT compared with a LOAN_PAYMENT loan payment.</H1>**GRAPH**<P>Your lease payment would be MONTHLY_PAYMENT compared with a LOAN_PAYMENT loan payment. This is based on a price of CAR_PRICE and a TERM month lease vs. a LOAN_TERM month loan. Details of your cost of leasing and cost of buying are shown below:<P><CENTER><table border=0 bgcolor='#000000' width=95% cellspacing=1 cellpadding=0><tr><td width='100%'><table bgcolor='#FFFFFF' border=0 width=100% cellspacing=1 cellpadding=5> <TR BGCOLOR='#CCCCCC'><TD COLSPAN=2><B><CENTER>Buy</CENTER></B></TD> <TD COLSPAN=2><CENTER><B>Lease</CENTER></B></TD></TD></TR> <TR><TD><b>Price</b></TD><TD ALIGN=RIGHT>CAR_PRICE</TD> <TD><b>Price</b></TD><TD ALIGN=RIGHT>CAR_PRICE</TD></TR> <TR><TD><b>Interest rate</b></TD><TD ALIGN=RIGHT>INTEREST_RATE</TD> <TD><b>Interest rate</b></TD><TD ALIGN=RIGHT>LEASE_INTEREST</TD></TR> <TR><TD><b>Down payment</b></TD><TD ALIGN=RIGHT>DOWN_PAYMENT</TD> <TD><b>Down payment</b></TD><TD ALIGN=RIGHT>DOWN_PAYMENT</TD></TR> <TR><TD><b>Other fees buy</b></TD><TD ALIGN=RIGHT>OTHER_FEES_BUY</TD> <TD><b>Other fees lease</b></TD><TD ALIGN=RIGHT>OTHER_FEES_LEASE</TD></TR> <TR><TD><b>Rate of depreciation</b></TD><TD ALIGN=RIGHT>RATE_OF_DEPRECIATION</TD> <TD><b>Residual percent</b></TD><TD ALIGN=RIGHT>RESIDUAL_PERCENT</TD></TR> <TR><TD><b>Sales tax</b></TD><TD ALIGN=RIGHT>SALES_TAX</TD> <TD><b>Security deposit</b></TD><TD ALIGN=RIGHT>SECURITY_DEPOSIT</TD></TR> <TR><TD><b>Loan amount</b></TD><TD ALIGN=RIGHT>LOAN_AMOUNT</TD> <TD>&NBSP;</TD><TD>&NBSP;</TD></TR> <TR><TD><b>Loan payment</b></TD><TD ALIGN=RIGHT><B >LOAN_PAYMENT</B></TD> <TD><b>Lease payment</b></TD><TD ALIGN=RIGHT><B >MONTHLY_PAYMENT</B></TD></TR> <TR><TD COLSPAN=4>&NBSP;</TD></TR> </TABLE></TD></TR></TABLE> <P><table border=0 bgcolor='#000000' width=95% cellspacing=1 cellpadding=0><tr><td width='100%'><table bgcolor='#FFFFFF' border=0 width=100% cellspacing=1 cellpadding=5> <TR BGCOLOR='#CCCCCC'><TD COLSPAN=2><CENTER><B>Net cost of buying</CENTER></B></TD> <TD COLSPAN=2><CENTER><B>Net cost of leasing</CENTER></B></TD></TD></TR> <TR><TD><b>Total loan payments</b></TD><TD><TABLE BORDER=0 CELLPADDING=0 WIDTH=120><TR><TD WIDTH=20>+</TD><TD ALIGN=RIGHT>TOTAL_PAYMENTS</TD></TABLE></TR></TD> <TD><b>Total lease payments</b></TD><TD><TABLE BORDER=0 CELLPADDING=0 WIDTH=120><TR><TD WIDTH=20>+</TD><TD ALIGN=RIGHT>TOTAL_LEASE_PAYMENTS</TD></TABLE></TR></TD></TR> <TR><TD><b>Lost interest on buy option</b></TD><TD><TABLE BORDER=0 CELLPADDING=0 WIDTH=120><TR><TD WIDTH=20>+</TD><TD ALIGN=RIGHT>LOST_INTEREST_ON_BUY</TD></TABLE></TR></TD> <TD><b>Lost interest on up front costs</b></TD><TD><TABLE BORDER=0 CELLPADDING=0 WIDTH=120><TR><TD WIDTH=20>+</TD><TD ALIGN=RIGHT>LOST_INTEREST_ON_LEASE</TD></TABLE></TR></TD></TR> <TR><TD><b>Down payment</b></TD><TD><TABLE BORDER=0 CELLPADDING=0 WIDTH=120><TR><TD WIDTH=20>+</TD><TD ALIGN=RIGHT>DOWN_PAYMENT</TD></TABLE></TR></TD> <TD><b>Up front costs</b></TD><TD><TABLE BORDER=0 CELLPADDING=0 WIDTH=120><TR><TD WIDTH=20>+</TD><TD ALIGN=RIGHT>TOTAL_UPFRONT_COSTS</TD></TABLE></TD></TR> <TR><TD><b>Market value after TERM months*</b></TD><TD><TABLE BORDER=0 CELLPADDING=0 WIDTH=120><TR><TD WIDTH=20>-</TD><TD ALIGN=RIGHT>MARKET_VALUE_AT_END_OF_LOAN</TD></TABLE></TD> <TD>&NBSP;</TD><TD>&NBSP;</TD></TR> <TR><TD><b>Ending loan balance</b></TD><TD><TABLE BORDER=0 CELLPADDING=0 WIDTH=120><TR><TD WIDTH=20>+</TD><TD ALIGN=RIGHT>ENDING_LOAN_BALANCE</TD></TABLE></TD> <TD>&NBSP;</TD><TD>&NBSP;</TD></TR> <TR><TD><b>Net cost of purchase</b></TD><TD><TABLE BORDER=0 CELLPADDING=0 WIDTH=120><TR><TD WIDTH=20>=</TD><TD ALIGN=RIGHT>NET_COST_OF_PURCHASE</TD></TABLE><B></B></TD> <TD><b>Net cost of lease</b></TD><TD><TABLE BORDER=0 CELLPADDING=0 WIDTH=120><TR><TD WIDTH=20>=</TD><TD ALIGN=RIGHT><B>NET_COST_OF_LEASE</B></TD></TABLE></TD></TR> </TABLE></TD></TR></TABLE> <P class=footer>*We assume that you sell your leased equipment at the estimated market value at the end of the term.</P> <BR> </CENTER> <BR> <HR SIZE=1> <CENTER><P class=footer> Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues. </P></CENTER><br><br> </BODY> </HTML> "> <H1><CENTER>This Financial Calculator requires SUN's Java"! Plug-in. If you see this message you will need to download SUN's Java"! Plug-in. This can be done automatically by clicking the yellow bar at the top of your browser and choosing  Install ActiveX Control . </CENTER></H1> <OL> You can also get SUN's Java"! Plug-in here: <A href="http://www.java.com/en/download/download_the_latest.jsp" target=_blank><b>Get the Java"! Plug-in!</b></A> <P>For more information about this Plug-in please visit: <A href="http://www.dinkytown.net/money/sunjvm.html" target=_blank><b>SUN's Java"! Plug-in</b></A> <BR>For more information these financial calculators please visit: <A href="http://www.dinkytown.net" target=_blank><b>Financial Calculators from KJE Computer Solutions, LLC</b></A> </OL><!--[if IE]></OBJECT><![endif]--><![if !IE]></APPLET><![endif]> </CENTER><CENTER><SCRIPT>document.write(showbuttons())</SCRIPT> </CENTER> <H1>Definitions</H1><P><TABLE align='center' WIDTH="95%"><TR><TD><DL><!--DEFN_START--> <DT><B>Purchase price</B><DD>Total purchase price.<P> <DT><B>Down payment</B><DD>Amount paid as a down payment, which for leases is often called a capital reduction.<P> <DT><B>Sales tax rate</B><DD>Sales tax percentage to be charged on this purchase. Sales tax is included in each lease payment. Sales tax for a purchase is charged on the total sale amount.<P> <DT><B>Investment rate of return</B><DD>Rate of return on investments. This is the return that you would make if you were to invest your down payment or security deposit instead of using it in your purchase or lease.<P>The actual rate of return is largely dependent on the type of investments you select. For example, from December 1999 to December 2009, the average annual compounded rate of return for the S&P 500 was -0.6%, including reinvestment of dividends. From January 1970 to December 2009, the average annual compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 10.1% (source: www.standardandpoors.com). Since 1970, the highest 12-month return was 61% (June 1982 through June 1983). The lowest 12-month return was -43% (March 2008 to March 2009). Savings accounts at a bank may pay as little as 1% or less but carry significantly lower risk of loss of principal balances.<P>It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that funds and/or investment companies may charge.<P> <DT><B>Term in months</B><DD>Term in months for your lease or your loan.<P> <DT><B>Other fees</B><DD>Any fee, other than a capital reduction or down payment, required to be paid at the close of the lease or loan.<P> <DT><B>Annual rate of depreciation</B><DD>The rate of depreciation gauges how fast your new purchase will lose its market value. A high depreciation rate is about 20% per year, medium is 15% per year and low is 10% per year.<P> <DT><B>Interest rate</B><DD>Annual interest rate for your loan or your lease.<P> <DT><B>Residual percent</B><DD>For leases, this is the remaining value after the lease term expires. The higher this amount is, the lower your lease payment will be.<P> <DT><B>Security deposit</B><DD>Required deposit on leases. The security deposit is refunded to you at the end of your lease (depending on excessive wear or damage). <P> <DT><B>Lost interest on buy option</B><DD>This includes any interest you would have earned at your investment rate of return on the buy option's down payment and other fees. If the monthly payment for leasing is less than the monthly payment for buying, this also includes any lost interest due to the higher monthly payments for buying. If leasing is more expensive than buying, your interest costs for buying are reduced by the amount of interest you would earn on the difference.<P> <DT><B>Lost interest on lease option</B><DD>This includes any interest you would have earned at your investment rate of return on the lease option's down payment, security deposit and other fees. Please see the definition for "Lost interest on buy option" for an explanation on how we account for any interest you might earn by having a lower monthly lease payment. <!--DEFN_END--></DL></TD></TR></TABLE> <BR> <HR SIZE=1> <CENTER> <P class=footer> Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues. </P></CENTER> <BR> </BODY> </HTML>