Leasing Equipment 

Prices: Leasing Vs Outright Purchase

A&J Audio prides itself on value for money. Without being competitive we wouldn't sell a thing; however, we will not compromise on quality.

Most clients use a lease to acquire their system. This is a highly tax advantageous means of purchase because every payment receives 100% tax relief.

Example

Outright purchase: £5,000

Lease: £26.00 per week
(Paid by quarterly direct debits of £338)

Normally 20 payments (5 years) £6,760

Maximum tax relief 40% £2,704

Cost after tax relief £4,056

A SAVING OF £944 AGAINST THE CASH PURCHASE PRICE

As you can see by the example above the lease can have considerable advantages.

1. The tax relief can actually reduce your overall cost
2. You don't have to waste your valuable money on your AV system when you can invest in stock and increase your profits.

End of Lease

During the lease period (normally 5 years) you are renting the system and for that reason you are gaining your 100% tax relief. At the end of the period therefore the equipment is not your property which means in theory you should return it to the suppliers.

However in practice no one does this.

We will sell on the ownership of the system for one further quarters payment, which of course is still 100% tax deductable.

Which way to go

Unless you have the cash in your budget with nothing else to spend it on most clients will prefer the lease option. Either way we will be pleased to assist you.

sales@ajaudio.co.uk

TELEPHONE (UK) 01803- 324589 

TELEPHONE (INT) +44 1803- 324589

Head Office

©2007 A&J AUDIO. All Rights Reserved.