- Loan term in months
- Term in months for your loan.
- Down payment
- Amount paid as a down payment, which for leases is often called a capital reduction.
- Other fees
- Any fee, other than a capital reduction or down payment, required to be paid at the close of the lease or loan. This may include license, title transfer fees, etc.
- Purchase price
- Total purchase price. Price should be after any manufacturer's rebate.
- Interest rate
- Annual interest rate for your loan or your lease.
- GST + PST or HST (%)
- Tax percentage rate charged on this purchase in your province. GST + PST or HST is included in each lease payment. GST + PST or HST for buying is charged on the total sale amount.
- Rate of depreciation
- The rate of depreciation gauges how fast your new equipment will lose its market value. A high depreciation rate is about 20% per year, medium is 15% per year and low is 10% per year.
- Residual percent
- For leases, this is remaining value after the lease term expires. The higher this amount, the lower your lease payment will be.
- Market value
- Value of your equipment after the lease term is over.
- Investment rate of return
- Rate of return on investments. This is the return that you would make if you were to invest your down payment or security deposit instead of using it in your equipment purchase or lease. The actual rate of return is largely dependent on the type of investments you select. For example, for the last thirty years the average annual rate of return for the TSX is about 10%. Savings accounts at a bank or credit union may pay as little as 2% or less. It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment.
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