We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Buying Versus Leasing - Assignment Example

Comments (0)
Buying Versus Leasing Name Institution Buying Versus Leasing Abstract More than often, choices made when opting to buy or lease a car are influenced by economic and managerial decision-making factors. In most cases, comparison of the purchase price and lease payments, comparison of present value and ownership at the end of the leasing period influence the decision undertaken…
Download full paper
Buying Versus Leasing
Read TextPreview

Extract of sample
Buying Versus Leasing

Download file to see previous pages... More significantly, capital budgeting is more commonly used in management planning as it gives an outlay of the long-term implication of purchasing or leasing a new car. Therefore, the main aim of the thesis of this paper is to not only evaluate the suitable choice of acquiring cars, but to also analyze the financial and non-financial factors that influence decision making. Executive Summary Investment decisions are based on economical and effective factors that make the purchase of cars more viable as compared to leasing a car. More significantly, application of capital budgeting in deciding on purchases takes into consideration the viable choice after carrying out appraisal based on the expenses related to buying and leasing and their cost respectively. As a result, capital budgeting is more commonly used in management planning as it gives an outlay of the long-term implication of purchasing or leasing a new car (Thomas & Maurice, 2011). More so, considerations should be undertaken based on the provision economic decisions based on interest rates, sources of finances, end of lease fees, loan terms, personal guarantees and operating cash while making decisions on whether to procure or lease a car as related to economical costs. Even though, leasing allows for payments within small intervals it is considerably expense as the payments accumulate over time with no long-term benefit being derived. Definition In the acquisition of new assets, there are two choices based on whether to lease or purchase. More considerably, leasing comes either as operational or capital lease depending on the terms of the contract. In capital leasing, an individual is allowed to finance the maintenance and use of the car while at the end of the agreed lease term take up ownership after undertaking a nominal buy out lease. On the other hand, operational lease allows for renting of the car, and as a result, there is no ownership entitled at the end of the contract as the lease term allows for monthly payments (Powell, 2009). Nonetheless, purchases allow for payments to be made at the initial purchase and ownership of the asset is transferred immediately to the buyer. Even though, the leasing of a car seem viable it involves regular payment of the leasing fee as the returns of the vehicle passes back to the initial owner, when the lease term comes to an end as compared to purchases where upon payment of the purchase price legal ownership is issued immediately to the buyer of the car. As a result, there is a significant difference in terms of payments and ownership term in the purchase and leasing of a car. More considerably, to understand about leasing agreements, it is essential to understand about the lessor as the leasing company in which they deal with leasing of cars based on rights that govern the contract (Powell, 2009). While the leaseholder, or lessee is an individual who utilize services of the leasing company through leasing of vehicles. As the lessee uses the vehicle, they make payment based on calculated monthly lease charge this payment made are considered to cover the interest that is charged by the leasing company for services offered. As a result, the leaseholder makes a choice on the type of lease to undertake. If an individual chooses capital lease, it is known as closed-ended lease because the leaseholder does not get a guarantee of ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
Art Versus Design
Since, the required expertise emanates from real practicing of one line of passion. Conversely, design is a skill that requires training and its advancement originates from hand on experience, coupled with more training. However, both may convey significance, but design’s is specific where its perspective remains identical to all people.
4 Pages(1000 words)Assignment
Shareholding versus Stakeholding
5 Conclusion 6 Reference list 7 Introduction The topic under discussion is the difference between the shareholders and the stakeholders of a company. Though both are equal owners of the company, yet the main difference between the shareholders and the stakeholders lies in the interests of the two, which usually overlap.
4 Pages(1000 words)Assignment
Buying your first home
These things are embodied in a handbook: Guide to First Time Home Purchases. A comprehensive guide consisting of step-by step instructions and recommendations, you cannot help but take note and appreciate its contents.
8 Pages(2000 words)Assignment
Figurative Language versus Literal Language
Idiom is a “multi-word lexeme” (Tschichold, 1995, par. 2), whose meaning is different from what the words actually mean. For example, “I’m broke” is an idiom which means that “I am out of cash”. It does not mean that a person is broken at
3 Pages(750 words)Assignment
Agile versus Waterfall
I will choose the one of these methods for my e-commerce project of website development through which our customers can buy our products, or access plenty of features. There have been endless discussions over the effectiveness of these two methods for software development and
5 Pages(1250 words)Assignment
Media Buying Assignment
But the size varies as the width of column varies by publication. So there is no absolute size of agate line. Modular agate line is wider than a agate line. This line has a standardized unit which is equal to 1/14” deep and one column wide. The size
3 Pages(750 words)Assignment
Marketing Services Versus Products
Depending on whether someone is marketing a product or a service, the approach to marketing may be different. There are however times that the approach to marketing products
2 Pages(500 words)Assignment
Leasing assignment
or operating lease and continues to postulated that to determine whether a company has an operating lease and capital lease, there must be substantial transfer of risks and rewards incidental to ownership from the lesser to the lessee, there must be a bargain purchase option,
5 Pages(1250 words)Assignment
Organizational Buying Behavior
Some of the factors that may influence the organizational buyer behavior include competition and staying ahead of the competitors, regulatory
1 Pages(250 words)Assignment
Advantages and Disadvantages of Making and Buying
Both the outside resources and internal resources are very important for the development of a new system in an organization particularly when the combination that takes place is synergistic or turns out to be great. Internal resources include IT department analysts as well as other expert individuals.
2 Pages(500 words)Assignment
Let us find you another Assignment on topic Buying Versus Leasing for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us