Home - Lease vs. Buy
   
   
 

Information you may want to consider
When today's equipment is likely to meet long-term needs, purchasing is often the most cost-effective acquisition choice. If, however, your needs are likely to change within the next few years, leasing may be the smarter alternative.
 

Leasing allows you to acquire the equipment you need today and use it cost-effectively until it no longer meets your needs, then upgrade without dealing with the outdated and obsolete.

Does your business depend on staying on the leading edge?
If your competitive advantage relies on the latest, most sophisticated hardware, leasing should definitely be considered.  No matter how fast the leading edge is moving, leasing helps you keep pace.

Do you need financial flexibility?
You may be able to expense your monthly rental payments rather than depreciating the equipment cost, allowing you to order new equipment as you need it (consult you tax accountant).          

What does a lease vs. purchase analysis tell you?
A "lease vs. buy" analysis compares the costs of leasing and buying based on the assumptions used for residual value, cost of funds, tax rates, and so on.

* Consult your tax and legal advisors for specific advice on the potential tax benefits of leasing for your situation.

Can I avoid a large cash outlay?

Cash  100% of cost
Loan Down Payment, often 25%
Lease 100% Financing

Effects my bank credit line?

Cash Balance sheet impact
Loan Decreases credit line
Lease No money is borrowed

Effects operating capital?

Cash High up front costs
Loan Down Payment required
Lease Low front-end costs

Payments

Cash 100% now
Loan Payments vary with interest
Lease Fixed payments, possible tax benefits*

Can I upgrade/add on easily?

Cash  No
Loan Re-application often required
Lease Yes

Can I schedule payments to
match my cash flow?

Cash  No
Loan  No
Lease Yes

 

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