Capital costs (leasing)

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Capital costs (leasing)

It would be disingenious to forget about paying for the unit. The estimates below are based on about 1,000 miles of transport cost plus the price of the kiln without any upgrades. Naturally, the lease per month is based on good credit. In your specific situation, we would have to make custom estimates taking the actual freight cost and any upgrades into account.

**Leasing cost (or depreciation) of heat treating pallets:**
Estimated lease cost:	Monthly	Weekly
Piggy-back pallet kiln unit	US$: 450.00	US$: 106.00
Junior, short model: PHT-321111	US$: 760.00	US$: 176.00
Junior, long model: PHT-471111	US$: 935.00	US$: 216.00
High eff. standard model: PHT-471212	US$ 1110.00	US$ 256.00
High eff. wide model: PHT-471412	US$: 1236.00	US$: 285.00
These leasing numbers are based on good credit and a 60-month lease with a 10% buy-out at the end. For companies with excellent credit the payments could be a little bit lower. We always suggest you ask your local bank as well, since they know you and your company and can often give you a better interest rate.

If you are planning to buy the kiln with a lease or loan, your depreciation cost will be much lower since interest is not taken into account; plus the depreciation period is 7 years. But we believe in taking the most conservative approach in determining the cost of heat treating pallets.

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