Questions > Is It Better to Lease or Purchase Computer Equipment for a Business?

Is It Better to Lease or Purchase Computer Equipment for a Business?

by New Equipment Leasing on August 22, 2011

{ 4 comments… read them below or add one }

Gatherer January 27, 2011 at 4:53 pm: buy
Everett M January 27, 2011 at 5:07 pm: Technology changes so quickly that leasing is the best way to go, when there are problems you have someone to turn to and get to fix it also
Sugarbear January 27, 2011 at 6:04 pm: 2 schools of thought of course.

1. Buy, if your technology needs are low and don’t seem likely that you will need more computation power or anything, then buy as a long term sunk cost investment.

2. If you will need to upgrade your technology on a regular basis to keep up in your industry, then lease.
overitguy January 27, 2011 at 6:17 pm: There are pros and cons for both….

With a lease…

Your lease payment is tax deductable as a viable business expense. Hence Uncle Sam ends up paying for your hardware.

When you buy…

You only get to deduct for depreciation…in other words pennies on the dollar…

Commercial Equipment Leasing does require good credit. If your Credit doesnt hold up then you may have no alternative other than to buy.

You must log in to post a comment.