Pros and Cons of Leasing vs. Buying Business Equipment
BY: Jeff Schleis
- How frequently does technology change with a particular asset?
- What are your financing options for purchasing vs. leasing?
- What are the tax benefits of buying vs. leasing?
- How long do you plan to keep the asset?
- Usually pay nothing up front
- Predictable monthly expenses
- Your equipment will be up-to-date
- Acquire technology otherwise possibly unable to afford
- You will pay more in the long run
- You must keep paying even if you no longer use the equipment
- Easier than leasing
- Your equipment may be tax deductible; contact your tax consultant
- You get to make decisions on maintenance
- Eventually equipment will be outdated
- The equipment you really need may drain your capital
- You pay for all the maintenance