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Buy vs Lease Car Buy vs Lease Automobile Use this template to

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Buy vs Lease Car Buy vs Lease Automobile Use this template to Powered By Docstoc
					                        Buy vs Lease Automobile
Use this template to analyze whether to buy or lease a car. It assumes that the
discount for present value and the cost of borrowing are different, though they
could be equal.
Enter lease and purchase data in unlocked cells. The tax consequences of a
lease and a purchase may be decisive and will vary in each instance, so you
should see your tax advisor if taxation enters the picture. Always check with
your professional advisors before you make an important financial decision.
To view the template, click the worksheet tab labeled Template at the bottom
of the screen or press Ctrl-PgDn. With the exception of data entry cells, all cells are
protected. Use the Tab key to move from one unprotected cell to the next.
                  Buy vs. Lease Automobile
Make & Model:


                                         Lease                                                      Buy
Suggested Retail Price                                        Suggested Retail Price
Tax, Title, etc.                                              Tax, Title, etc.
Refundable Security Deposit
First Month's Payment
Capital Cost Reduction Payment                                Down Payment

Last Month Payment in Advance?
Payment (if Yes)
Selling Price At End Of Lease                                 Resale Value
Monthly Lease Payment                                         Monthly Loan Payment
Lease Term                                                    Term of Loan
Discount for Present Value                                    Loan Rate

Future Value of Last Payment                                  Present Value of Resale



Initial Costs                                                 Initial Costs
Financing Costs                                               Financing Costs
Present Value of Refund
Present Value of Total Costs                                  Present Value of Total Costs

                                                                            Difference
                                                                Note: Positive Value Favors Lease


Taxation
Tax Bracket
Business Use Percentage
Sales Tax Percentage

Title                                                         Title
Fees                                                          Fees
Sales Tax                                                     Sales Tax
Potential Financing Deduction                                 Interest Deduction
Total Potential Deductions                                    Total Potential Deductions
Potential Tax Savings                                         Potential Tax Savings



Note: Depreciation deductions may be available that could change the results of this analysis.

				
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posted:1/20/2012
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Description: Use this template to prepare a series of bond valuations