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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: freeus who wrote (35976)	3/29/1998 12:24:00 AM
From: Gabriel008	Respond to of 176387

DELL MAKES IT EASY Article below copied from IBD. PC Leases Can Keep Cash In Your Hands Date: 3/30/98 Author: Stephanie Wilkinson When you crave the power of the latest personal computer technology but don't have ready cash, what can you do? You could try leasing. New leasing options mean you can have more computing bang for your monthly buck. You'll also have built-in full-term technical support and service. And you won't have to worry about what to do with an outmoded PC at the end of the lease period. You can just return it to the lessor or trade up to a newer model. If you wish, though, you can buy the old computer outright for a small percentage of the original price. ''Leases are a lot more user friendly than they used to be,'' said Lorraine Cosgrove, research manager at International Data Corp., a market research firm in Framingham, Mass. ''It's not like the old days when you really had to study the contract hard to figure it out.'' Simpler terms, lower rates and the attractive operating cost of leasing have spurred growth in the market. IDC analysts forecast 15% to 20% growth in PC leasing over the next two years. Businesses have enjoyed the advantages of leasing for years. Low initial cash outlays for equipment have helped companies free capital for other purposes. Now PC makers are finding that leasing is becoming increasingly popular among home-office owners and computer hobbyists. In the last year, large mail-order computer vendors, such as Dell Computer Corp. and Micron Electronics Inc., have opened their leasing programs to consumers as well as business customers. These programs make finding and financing a new PC possible in a single phone call. If you're considering a PC lease, however, it still may pay to shop around, experts say. Sometimes a third-party leasing company can beat a maker's corporate rate. Here are some tips: If you've never leased anything before, learn the basics. One place to start is the Equipment Leasing Association of America's home page on the World Wide Web. There you'll find a primer on leasing, among other features. Or try the PC leasing listings on search directory Lycos Inc.'s site. To figure out what it may cost you each month to lease the desktop or notebook computer of your dreams, check out Dell's Web site. With its online lease calculator you can type in the retail price of your dream machine and get a monthly cost. To qualify for some consumer leases, you must meet certain minimum criteria. Micron requires you to be 21 years old and a U.S. citizen with a valid Social Security number. You also must have a home phone number, hold a major credit card and have a checking account. In addition, some companies require a security deposit. In comparing leases, note the interest rate, the term of payment and support guarantees. Be on the lookout for additional fees. Leasing companies generally charge a ''document processing'' fee. These range around $50, but vary according to lessor. While you can usually add that cost into the total lease price, it's smarter to pay it off upfront if you can. Another way to keep the cost of a lease down is to purchase outright the peripherals and other accessories that won't become obsolete. That means paying cash for such things as monitors and modems. You may be able to find lower monthly lease payments through a third- party leasing company. Barry Reitman, president of Keystone Equipment Leasing Inc. of Hasbrouck Heights, N.J., claims many of his business customers obtain lease quotes directly from the major vendors and then cut a better deal with him for the same equipment. Be aware of early termination fees. If you decide you want to quit the lease before the agreed-upon time, you'll pay a penalty. This is usually 5% to 7% of the original cost of the computer. The earlier in the lease period you cancel, the stiffer the penalty. At the end of the lease, be prepared to transfer your data to a new PC if you decide to return the old one. If you are confident you can do it successfully, that's best. Lessors often charge around $300 to do it for you. If you get a midlease hankering for more power or additional options for your PC, remember to notify the leasing company before you start fiddling with the box. ''You can improve the machine as much as you want,'' said a Dell spokeswoman, ''but we need to approve it first.'' Remember that leasing is not for everyone. If you're lucky enough to have a credit card with an annual interest rate of 5.9% or lower, you'll save money by charging that PC instead. You won't pay any processing fees, for one thing. And in the end, the computer is yours. Finally, know yourself and the terms of your lease. ''Leasing is definitely not for the disorganized,'' said IDC's Cosgrove. ''Leasing companies make the most money when people aren't paying attention to the terms of a lease.''