Leasing

THE ADVANTAGES OF LEASING

In Australia a very large number of businesses choose to lease equipment because of the many advantages leasing offers:

Protects Working Capital

Equipment bought outright means that the cash you have invested becomes tied up in a depreciating asset and cannot be used for other purposes. Leasing the items of equipment you need enables you to save your cash resources.

Protects Existing Bank Borrowing Facilities

When you lease equipment existing credit facilities including bank facilities are not affected, enabling them to be used in the future if necessary.

Better Budgeting

Lease payments are not affected by interest rate changes so, unlike bank loans or bank overdrafts, you can accurately budget for these payments over a fixed period, usually two to five years.

Tax

Leasing can be very attractive as lease payments are fully tax deductable thereby reducing the net cost of the equipment.

Low Initial Outlay

Most lease agreements do not require an initial outright payment and allow you to simply make regular payments throughout the life of the agreement. Quick Play Golf Australia use only this type of leasing agreement.

WHAT IS THE COST OF LEASING AN I-M4 MONO CRUISER

Rental purchase price based on 48mths (4 years)

$149.90 ex GST per month - approximately $4.90 a day.

On completion of the rental agreement a market value payment can be made to complete ownership of the product or the product can be returned for a brand new fleet with a new agreement.

Finance lease based on 48mths (4 years) with a $50.00 residual.

$149.90 ex GST per month - approximately $4.90 a day.

Make an additional payment of $50.00 at the end of the leasing agreement for the overall ownership of the product.

RENTAL INCOME POTENTIAL FROM ONE I-M4 MONO CRUISER

51 Weeks (358 days)

2 rentals per day (716 Rounds) @ $20.00 per Round = $14,320

1 rental per day (358 Rounds) @ $20.00 per Round = $7,160

5 rentals per week (255 Rounds) @ $20.00 per Round = $5,100

Conclusion

It is realistic to expect to hire out the I-M4 Mono Cruiser once a day and based on the figures above the total buggy outlay is paid for in the first year. Therefore all further rental income is pure profit.

By running a fleet of I-M4 Mono Cruisers the rental income potential is limitless.

* The above repayments are approximate and Leasing Agreements are subject to status and
  confirmation.