Lease vs purchase learning

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Lease vs purchase learning

Figuring out how to pay for all the stuff is the trick that eludes many administrators. With computer gear rapidly becoming one of the largest single expenses a school can face, many institutions and districts Lease vs purchase learning choosing to avoid the huge up-front costs by leasing it instead.

It adds up to a win-win situation for schools, students, and administrators. With technology changing as fast as hairstyles, this large price tag can pop up every two to three years for schools wanting to stay up-to-date.

While some schools float special bond issues or pay for new equipment out of regular operating funds, more and more districts are turning to leasing to fill classes with computers and other educational equipment. Knowing what to expect can help ensure your school always has the right stuff at the right price.

Think of it as the equivalent of leasing a car, with the goal of stocking a school with computers, projectors, and networking equipment instead of wheels.

Rather than a lump sum, the school pays a little at a time for the use of the equipment and promises to return it at the end of the leasing period. The typical academic lease runs between two and four years.

By spreading out the payments, leasing can free up resources to take care of other important items, from maintenance and after-school activities to capital projects.

Rather than leasing the 5, notebooks all at once, the Kershaw program started in with ninth graders. Since then, every incoming class is equipped with new machines at the start of the school year. Every student carries the same system throughout high school, and surrenders it before graduation, when the lease ends.

Leasing is so popular for companies, schools, and individuals these days that just about any piece of tech gear—from systems to networking equipment—is available on a payment plan. The good news is that the lease often includes training, software, and services.

When Pascack Valley High School in Hillsdale, New Jersey, decided to lease a Sony notebook for each student and faculty member inadministrators could hardly have imagined the effect it would have on teaching and learning.

With the new machines, instruction at Pascack Valley High has moved beyond the printed word to access to 25 online resources and five all-digital classes. By leasing instead of buying, the school is relieved of the financial burden of system disposal.

Accounting, Financial, Tax

While schools that own computers typically hold onto them longer when they become antiquated and pass them down to less demanding users, even the best computer must meet its maker eventually.

Most schools give the machines back. By trading up at the end of the lease, the school never has systems older than two-to-four years. It works best with items like cars and notebook computers that are still worth something at the end of the lease.

This residual value lowers the lease payments along the way, making the machines more affordable. Every dollar that the equipment is worth at the end of the lease is one dollar less the school has to pay while using it.

The best bet for savvy schools is to get vendors to fight over your business by soliciting bids from all the major system makers and leasing companies. Regardless of who ends up supplying it, the equipment is typically delivered to the school with asset-management software and ID labels affixed, which allows the school to keep track of who has what.

This makes it a lot easier to round up the systems at the end of the lease. Many firms offer set-up services that range from installation and configuration to software loading and training.

It sometimes makes more sense to buy. Wilson Elementary School in Sanger, California, was pinched for money to outfit its classrooms and adult-education program with new computers, so the district tried a different approach. Instead of getting separate computers for each student to use, the board realized that since they were needed at different times of the day, the systems could be shared.

While most prefer the predictability of making monthly payments, others might want to schedule an annual payment for when property taxes are disbursed, private-school fees are paid, or even when an annual donation drive ends.

As a parochial school with limited resources, most of the income for the St. Agnes Academy and St. Inthe school set up a lease with Apple Finance to equip its students and faculty members with notebooks as well as wireless networking gear to link them as they roam the four-building campus.

The school sends checks to Apple twice a year—after its coffers have been replenished with tuition payments. Like car-finance companies, they charge interest to pay for the equipment, their expenses, overhead, and profit.

At 5 to 15 percent a year, the interest charges can add up quickly, and over a three-year lease, the school might actually pay an extra 25 to 50 percent.A lease-purchase is a lease agreement with a sale contract attached to it.

In these agreements, the property being leased by the tenant/buyer will be purchased at the end of the lease agreement.

In these agreements, the property being leased by the tenant/buyer will be purchased at the end of the lease agreement. Leasing vs Buying: Which Is Best for You? and while you'll save money on the purchase price, you may not have the option to lease it. From inspiration on starting a business to learning.

Lease vs. Buy How to Choose Presenter Gary Hatfield, Mercury Associates. Basics of Fleet Costs: Typical Dollar – The initial purchase price minus the current fair market value (FMV).

Lease vs purchase learning

Note: Residual value -- another name for salvage value. into lease vs. own cost analysis). is the place to go to get the answers you need and to ask the questions you want. KPMG Learning Executive Education CPE credit group courses listing for corporate accountants and financial executives.


Discounts for combination programs. When I look buy vs lease, I think about the impact on my net worth over the long term. Look at a new car purchase vs lease over a 5 year period.

Top 10 Differences between hire purchase and leasing