| |
|
|
|
|
|
 Current position ： |
|
|
|
| |
|
|
| |
|
Rental vs. purchase |
|
CONTRAST RENTAL/CASH PURCHASE/MORTGAGE PURCHASE |
|
|
RENTAL (BUSINESS RENTAL) |
CASH |
MORTGAGE |
|
ACCOUNT HANDLE |
SIMPLE |
COMPLEX |
COMPLEX |
|
HR COST |
LOW |
HIGH |
HIGH |
|
CASH FLEXIBLITY |
HIGH |
LOW |
MID |
|
DEBT RATIO |
LOW |
HIGH |
LOW |
|
TAX SAVING – DEDUCTION(BUSINESS TAX) |
FULL |
NONE |
NONE |
|
TAX SAVING – DEDUCTION(BUSINESS TAX) |
HIGH |
LIMIT |
LIMIT |
|
|
|
|
|
FINANCIAL CONTRAST |
|
FINANCIAL CONTRAST ／ MORTGAGE |
LONGTERM RENTAL (BUSINESS RENTAL) |
|
1. |
Large amount of cash must be paid at a time |
|
2. |
Owned minibus input tax (5%) Cannot be deducted to the input tax |
|
3. |
Yearly Depreciation can be deducted to business overturn |
|
4. |
Cars regarded as fixed assets, with 5 years depreciation |
|
5. |
Financial budget complicated, accounting clearing complex |
|
|
1. |
Monthly fixed charges for rental (capital turns over) |
|
2. |
5% business tax is applicable for tax deduction |
|
3. |
All rental charges are deducted charges |
|
4. |
Depreciation is accelerated within the rental contract |
|
5. |
Ranked out of fixed assets(Monthly payment for rental as periodical charges) |
|
6. |
Fixed amount, financial statements simplified |
|
|
|
MANAGEMENT CONTRAST |
|
Cash rental |
Long-time rental |
|
1. |
Periodical maintenance, reparation, warranty and insurance claim |
|
2. |
Periodical inspection |
|
3. |
Tax paying |
|
4. |
Insurance renewal |
|
5. |
Accident Handling |
|
6. |
Irregularities and fine payment |
|
7. |
Insurance Claim |
|
8. |
Car origin and documents management |
|
9. |
Assets on-sale |
|
10. |
Car substitute |
|
|
1. |
JUFENG offers maintenance and client pickup, associated by JUFENG and insurance company at the same time. |
|
2. |
Inspection, insurance and fine payment are executed by JUFENG. |
|
3. |
Licensed under JUFENG, no access to the third one. |
|
4. |
JUFENG free you from no car troubles |
|
|
|
|
CASH |
|
RENTAL MEANS |
BUSINESS |
CAPITAI |
TERM |
REMARKS |
|
ITEM |
|
Car depreciation |
Include |
Include |
1~3 years rental
Rental Reletting |
Insurance, reparation and surcharge should be adjustable pratically
|
|
Gasoline |
|
Insurance |
optional |
|
Reparation |
|
Surcharge |
|
|
Insurance fee： |
Damage, larceny, parts, accident, passenger insurance。 |
|
reparation fee： |
Periodically maintenance, wearing parts replacement |
|
Surcharge： |
|
Maintenance, insurance claim, and use at random |
|
Appointed driver pickup |
|
|
|
TAX SAVING CONTRAST (eg) |
|
brand： |
BENZ |
model： |
E350 |
emissions： |
3,500 C.C. |
Price: |
￥897,500元 |
|
|
|
business |
cash purchase |
|
36 mortgages |
36 mortgages |
|
(a)amount |
(b)tax saved |
(a)amount |
(b)tax saved |
|
price |
|
|
￥897,500 |
￥78,125 |
|
down payment |
￥ 175,000 |
|
|
|
|
monthly rental for 3 years |
￥17,750 |
￥ 4,438 |
|
|
|
monthly rental for 3 years |
￥ 639,000 |
￥ 159,750 |
|
|
|
remaining value after 3 years rental |
|
|
(￥ 487,500) |
|
|
asoline and license cost for 3 years |
|
|
￥ 23,473 |
￥ 5,868 |
|
insurance for 3 years |
|
|
￥ 120,162 |
￥ 30,040 |
|
maintenance for 3 years |
|
|
￥ 36,000 |
￥ 9,000 |
|
ROI for 3 years |
|
|
￥ 231,114 |
￥ 57,778 |
|
Executive cost for 3 years |
|
|
￥ 9,000 |
￥ 2,250 |
|
Total amount/saved tax |
￥ 639,000 |
￥ 159,750 |
￥ 829,748 |
￥ 183,062 |
|
Actual total amount |
￥ 479,250 |
￥ 646,686 |
|
extra cost for rental |
￥ 167,436 |
|
|
Remarks： |
|
1. |
Monthly rental charges conver: |
|
|
|
A. |
Gasoline, license and administration cost for 3 years。 |
|
B. |
Insurance and reparation cost |
|
C. |
All-risk insurance cost |
|
D. |
Use at random during rental period |
|
E. |
Monthly rental excludes 5% business tax; deposit returned when rental duration over |
|
|
2. |
ROI forecast: circulating funds, not used in the field, the lost earnings ration 10%.：
(car price-deposit+3 years’ gasoline、license cost+3 years’ full-risk insurance) x 10% x 3years =3 years’ earnings forecast。 |
|
3. |
Administration management charges (i.e. work costs of financial, administrative, user, reparation, insurance claim charges) |
|
4. |
Tax saving conver： |
|
|
|
A. |
Rental charges may be deducted 25% of the business income taxes, listed out monthly. |
|
B. |
5 years depreciation charges are counted in capital depreciation, cash payment, according to rate of Item A. |
|
|
| |
|
| |
|
|
|
|
|
