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This page is intended for the sole purpose of facilitating and minimizing the telephone conversations between an enquiring customer and an ACE sales representative. It shows, through its illustrations, how the future of a rental may unfold should the customer wish to convert a rental into a purchase. All dollar figures and ratios are imaginary, and will have no bearing on the pricing and the quotes on the hardware that AC&E is selling or renting.
The table on the left applies to purchase orders that are issued monthly, and illustrates how the total purchase price of a $10,000 unit decreases with time. At the end of the 4th month, for example, the customer has the option to either return the equipment, or purchase it for $8,000.
The table on the right applies to open-ended purchase orders, and includes the odd-month 5% discount to long-term rentals. At the end of the 4th month, however, the purchase price rises to $8,050 to compensate for the 5% discount obtained earlier.
If the customer keeps the rental going indefinitely, there will come a time when the total purchase price becomes $0, at which time the title of the equipment transfers automatically to the customer. (as shown on the left on line 20, and on the right on line 27).
The process of ownership described above should neither be construed as a "LEASE", nor a "RENT-TO-OWN", with either of which it is obviously not competitive. It is AC&E's own way of ensuring that the customer's rental payments never exceed twice the purchase price of the rental, finance charges included, while still retaining the option of retuning the equipment at any time during the rental.