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| Thread ID: 45083 | 2004-05-08 22:51:00 | Flexirent as opposed to owning | Neil McC (178) | Press F1 |
| Post ID | Timestamp | Content | User | ||
| 235349 | 2004-05-08 22:51:00 | Looking at getting a new 3.2ghz this year.Been told by a salesman that it works out cheaper renting rather than buying as the accountant can get more back for me that way (to pay him)! But don't know that I like the idea of returning a unit after 3 years of my stuff being on it!There is the option of course of buying it at the end of that time.For about 1/10th of the original cost. You there roofus? |
Neil McC (178) | ||
| 235350 | 2004-05-09 19:48:00 | That really depends on the cost of you financing the outright purchase (loss of interest earned -by paying upfront) v the cost of financing the flexirent (interest and booking fee). If I read your post right (reference to an accountant) this would be a business PC you would actually be able to depreciate the PC in under 3 years (36% pa, straight line) and own the PC outright without the 10% final payment. I've always thought the main advantage of the flexirent systems was that if you could get out in shorter periods eg 12-18 months you would be in a position to upgrade to a higher spec PC - however I would guess these shorter terms come at a higher cost. |
TeejayR (4271) | ||
| 235351 | 2004-05-09 20:58:00 | Yes TeejayR,I would be purchasing it for the business.I know it would cost another $1400.00 on top of the price to rent,($3300.00 to buy) I know I can get it cheaper,just using these figures to work on.So I'm not sure how much can be claimed back to justify the higher cost!Apart from not having to use capital.Guess I'll have to ring the accountant.Hate it when they charge you for phone calls,and usually can't answer the question properly cause so and so deals with that side of things and they're busy,can you ring back so we can charge you more!!!!! And you can upgrade anytime through the rent period,extra cost of course.Thanks. | Neil McC (178) | ||
| 235352 | 2004-05-09 21:11:00 | As an accountant, and a person who has done comparisons of owning and renting and strategies for purchase on a regular basis, I can confidently say this: - leasing helps cashflow. - leasing can give you some flexibility with upgrades - but it does cost you. Here's the thing: The $1400 interest on a $3300 PC will buy you another PC. Don't ever buy a PC that will last you three years. if you upgrade software regularly, it's never going to last three years. You could buy a $1200 PC now, another one in 18 months, another one in another 18 months (by now, way faster that the one you are looking at today) and yet another in another 18 months. Total cost $4800. You've never had a PC longer than 18 months, and you'll get six years life out of them. Stretch the timeframe to two years and you get eight years life. You are never stuck with a PC that lacks greentooth, super-serial ATA, KPI slots, Gigabus, or USB 4. You get the latest OS each time. You get a clean machine without the baggage of the existing unit. You also get old PCs to give to the wife, kids, nephew, mother, or long lost evil twin. If you sell the old one to a friend for $100 you get the write off in the business faster. It's not too hard on cashflow either. I am ignoring screens in this, which can last a while, and you don't need to replace so often. Of course, that's only my humble opinion. robo. |
robo (205) | ||
| 235353 | 2004-05-10 00:49:00 | > But don't know that I like the idea of returning a unit after 3 years of my stuff being on it! You may be able to arrange a deal whereby you replace the hard drive with a new one so that you keep the hard drive you use. Or have a second hard drive placed in the machine purely for your data rather than OS and programs. Your hard drive can then be installed in your next computer which will save the bother of transferring your data across to a new drive. |
tommy (2826) | ||
| 235354 | 2004-05-10 00:53:00 | Ooh, none of those options sounds very good. Best to ensure everything you value is in one area and you transfer it. Leasing places wipe those machines and put a standard build back on them anyway. robo. |
robo (205) | ||
| 235355 | 2004-05-10 03:44:00 | I completely endorse Robo. In fact I'll get a stamp made up to do it with. :D Leasing is fine for expensive longterm assets or for very short-term needs. But only if you don't have the capital to actually buy the asset or don't want to be stuck with it. |
Winston001 (3612) | ||
| 235356 | 2004-05-10 07:39:00 | Love your idea Robo,thanks.Only thing is it's my home PC as well,and I want to do video editing on some 10 year old tapes I have.We've had this PC Co 800mhz,Win ME thing for over 3 years now,so I thought by buying the latest hot item it would last another 3.Of course my wife is perfectly happy with this one,until it freezes on her!So where can I get a pc with 2 hard drives,a decent video card,DVD writer,for $1200.00?Already updated the CRT late last year to a Philips 107x4,miles better than the old one,and have recently got a 120g external HD,very handy for rescuing friends files who don't have cdr! Popped in and saw the accountant's assistant and we worked out that renting is dearer,so will flag that idea. But I do have sisters with ancient machines who can't afford new ones!And $1200.00 every 18 months I could easily handle. ;\ |
Neil McC (178) | ||
| 235357 | 2004-05-10 23:01:00 | A friend last week got this: IBM A30 P4 2.8GHz 40GB 256MB CDRW Nic Dtop XPpro 48x/32x/48x CDRW Nic Black Desktop Win Xp Pro for $1080 ex gst. A clone one would be even cheaper. Models without CD writer would be cheaper again. Separate DVD writer to install should be less than $200 with luck. Video on any new PC will handle recording video (which isn't as hard as graphics for serious games). Video in might require a better card though, or even just a capture card that should be $200 or less. If you go with a reasonable clone brand, you should be able to do it without screen for close to $1200. Even if it costs $1500, the next one won't need the DVD writer or video in, you can swap them over. Transcribing videos takes forever and uses shitloads of disk space, I wish you luck on that one (my friend wanted to do all his Dangermouse videos, it was a killer, especially as he wanted each episode as a separate chapter). Let us know in this thread how you get on. robo. |
robo (205) | ||
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