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LEASE VERSUS PURCHASE ANALYSIS EQUIPMENT (SAMPLE) Based upon the GSOP176 (4/76) For Instructions see SAM section 3700 et. seq. Department Organization Unit Date General Services Office of Procurement.

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SAM Section 3700, Lease/Purchase Equip.
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When evaluating a lease vs. buy decision, the cash flows of each option over the lease term are discounted to calculate their net present values and the option with the highest net present value is then selected.

Evaluate your equipment usage and needs. Assess your organization's budget, cash flow, and financial priorities. Consider the total cost of ownership (TCO) throughout equipment lifespan. Review lease types and monthly lease costs.

Leasing capital equipment: Lowers upfront costs, compared to buying equipment outright. Reduces the chance that your company gets stuck with obsolete equipment, if your contract specifies upgrades. Transfers the cost of equipment maintenance to the leasing company, again ing to the terms of your contract.

If you have excess capital and a strong cash flow, buying may be the best option for your business. That way, you don't have to stress over financing or lease agreements. On the flip side, if you don't have a ton of extra capital on hand, it's typically best to lease the equipment (at least for the time being).

Leasing also reduces the initial cash outflow required to purchase an asset. For instance, a leased vehicle will require a lower monthly payment and no down payment versus a higher monthly payment and down payment to purchase. Finally, leasing can also provide liquidity to organizations that need it.

Whether you decide to lease or buy is dependent on several factors, such as the type of item (real estate, equipment, or vehicle), the fair value of the asset, the company's expected financial position over time, and the amount of capital your business currently possesses.

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© Copyright 1997-2025
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232