Parallel Technology

What types of leases do you offer? Generally, Parallel technology offers FMV and $1 buyout leases. With an FMV lease, you may have the option to turn in your system when the lease ends and receive a credit. Or you may buy the computer, either for a processing fee (around $75 to $100) or at its FMV. A $1 buyout lease means that you have the option to purchase the system for $1 when the lease is up. An FMV lease is generally best if you're pretty sure you'll upgrade to a newer system when your lease expires. If you'll want to hang onto the system, then you should consider a $1 buyout lease. Keep in mind, though, that monthly payments on FMV leases are usually lower than $1 buyout leases.
How long are the lease terms? Usually, leases for computer systems are 24, 36, or 48 months. Some companies may prefer other options, such as 18 or 30 months. Please keep in mind the longer your lease, the lower your monthly payments. Considering how quickly systems age, you might consider a 24-month lease. (A 24-month FMV lease for the $2950 desktop we mentioned earlier came out to $136 per month.)
Who owns the equipment? In some leases--technically considered capital leases--you're considered the system owner during the lease. Otherwise, the lessor is considered the owner, and you're technically renting the equipment. These are often known as operating leases. The question of ownership can have an impact on your tax deductions. For instance, if you don't own the computer, you can't claim its depreciation on your tax return.
What are the tax advantages? The tax advantages of leasing compared to buying a system can depend on the type of lease; the specific terms of the lease (whether you're considered the owner or the renter); and more. It's probably best to contact your accountant to decide which type of lease is best for you--or if you'd get better tax deductions from buying the system outright and, say, appreciating it on your return over several years.
Does the system need to be insured? Some lessors require that you insure the leased system. If you don't, they may add an additional fee to your monthly payment to cover insurance.
Is there an advance payment? You may be asked to make at least one monthly lease payment up front.
Can I add equipment to the lease? Yes, at Parallel we allow upgrades to the system and can simply recalculate your lease payments, taking into account the additional equipment. Generally, your lease term doesn't change.
Can I end the lease early? Suppose, one year after acquiring your new system, you're ready to upgrade to a newer model, but your lease is for two years. Can you pay off your lease early to upgrade to the newer model? Again, it depends on your lease agreement. Also important to ask: If you're allowed to pay off a lease early, is there a prepayment penalty? If so, how much?