Lease / Purchase Analysis
Lease / Purchase Analysis is performed with either of two methods in planEASe. The first, and preferred, method is Cost Comparison Analysis (described later in this section). It is preferred because it is more easily understood and presented, and it is also expandable to added alternatives for the owner / user. Doing Lease / Purchase analysis with the Cost Comparison technique requires two Assumption Sets, one for the lease, and another for the purchase. Two such Assumption Sets are shipped with planEASe as lblease.ru and lbbuy.ru.
The second method (called Simple (or Differential) Analysis) is performed in one Assumption Set that assumes the property is purchased and the lease payments that would otherwise have to be made if the property is leased are treated as revenues (ie: they are saved instead of being a cost). Since the analysis treats with a potential purchase, it is performed on an After-Tax basis, considering the depreciation benefits of ownership. The leasebuy.ru Assumption Set shipped with planEASe illustrates this method of analysis.
There is a Lease vs Buy Section on our Website in the Samples area with a movie showing a complete Lease / Purchase Analysis based on the leasebuy.ru Assumption Set shipped with planEASe and a PDF of Sample Reports from the same Assumption Set. You can access the Website from within planEASe by choosing the Help / planEASe on the Web menu option.
Suggested Movies within planEASe on Lease / Purchase Analysis:
At the Assumption Edit Screen: ! HowToStart / Lease vs Buy / Simple / Enter Assumptions ! HowToStart / Lease vs Buy / Simple / Suggested Reports ! Movie / Investment / for Lease vs Buy - Lease File ! Movie / Investment / for Lease vs Buy - Buy File ! Movie / Revenue / Tenant Rep / Enter Lease from Scratch ! Movie / Revenue / Tenant Rep / SubPages for Free Rent, etc ! Movie / Revenue / Existing Leases / Annual Growth ! Movie / Revenue / Existing Leases / Lease with One Bump ! Movie / Revenue / Existing Leases / Accrue by Period ! Movie / Revenue / Existing Leases / Accrue by Year
At the Sensitivity Analysis Screen: ! Movie / Compare Overview ! Movie / Compare Saving ! Movie / Lease vs Buy / Simple ! Movie / Lease vs Buy / Compare Discount Rate ! Movie / Lease vs Buy / Compare Holding Period ! Movie / Lease vs Buy / Compare Sale Price ! Movie / Lease vs Buy / Compare Inflation