Why Rent your Equipment - 02.02.2009
Finance: Rent and Lease.  
 
Sydney Office Equipment offers our customers the best rate on “All” Office Equipment rental and Lease Agreements. We have found that in recent years the tax advantages of Rental Agreements far outweighs Leasing.  
 
In today’s competitive market it is even more important that your office is able to make use of the products that help improve your business rather than compromising on quality and product and only purchasing the product that is in your capital budget.  
 
Benefits of Rental:  
 
• You do not have to use your capital and are able to structure your purchase of equipment suit your ongoing cash flow  
• All rental instalments are 100% tax deductible  
• End of term $1.00 buy out.  
• Continue renting on a month by month basis at a reduced rental  
• End of term – upgrade the product OR return the product with no more to pay  
 
Rental details: Important To Read  
Example of why RENT is less than the purchase price.  
As noted, the rental agreement has a $1.00 buy out at the end of term.  
 
Lets use a purchase price for a product of say $3,800.00 Ex’ GST  
A 60 month rental would be $101.65 Ex’ GST  
 
When customers look at the rental figure, they often multiply the rental term  
e.g. 60 x $101.65 = $6,099.00. However that procedure is incorrect  
as all rental installments are 100% tax deductible, therefore at the end of the 60 months you will have paid less than the purchase price of $3,800.00.  
 
 
The Do’s and Don’ts of Rental agreement  
• Yes - While we do click charge for rental and service i.e. include all of your service and toner supplies for the term on the agreement – We do NOT recommend the process as it will cost you more money than necessary. However at the end of the day it is Your Choice - as long as you have the correct information to make an informed decision  
• Do Not – allow your business to get locked into a rental agreements that includes all toner and service – you will regret the overcharging i.e. paying for copies you never use.  
• Yes – rent your machine and get your 100% tax benefit  
• No – do not add in your toner and service – as SOE and all other companies have to average out your estimated usage and charge you “upfront”  
• Yes – keep your toner and service separate and then you only pay for what you use.  
 
For personalised service call us on (02) 9899-5333  
Email: enquiries@sydneyoffice.com.au 
 

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