You likely already know that new devices are often more reliable and have lower associated service and maintenance costs. Once you have made the decision to upgrade however, do you know the pros and cons of leasing your new equipment versus purchasing it outright?
Benefits of Leasing: With leasing, there is no capital expenditure required, and it’s the more affordable option on a monthly basis. Smaller upfront costs mean you have more cash to invest back into your business. Your leased equipment is also a tax-deductible expense. Leasing agreements are also flexible when it comes to upgrades, making it easy to swap devices for newer technology as your needs change. Finally, equipment leases often include standard maintenance agreements, to ensure your device is cared for over the course of your lease.
Benefits of Buying: The full purchase price of your equipment is tax deductible. You can deduct the complete cost of your equipment in the first year, or you can spread it out over several years. Buying is also an easier process, since you don’t have to worry about lease contracts or provide any financial information. And once you own your equipment, you can decide how to maintain it, who services it, and where to buy your consumables. Although buying does require an up-front investment, it also means you usually end up paying less in the long run when compared to leasing.
Contact us today and we’ll help you navigate the buying or leasing process.