Dollar Buyout
How it Works
- Lease equipment for set term at fixed monthly payments
- At disposition, you can purchase the equipment for one dollar
- If you plan to keep your equipment for a long time, this may be the ideal option for you
Benefits
- You can claim the interest expenses
- Equipment can be shown as a company asset
- You can deduct the purchase price of the trailer(s) as a business expense in the first year
Example
Unit | 2020 Utility 3000R w/o unit = $54,000 |
Term | 72 Months |
Residual | $1 |
Rate | 6.25% |
Monthly Payments | $901 |
Total Interest | $12,241 |
Total Cost | $64,872 |