Every business needs to make the difficult decision at one point – do you buy your office equipment, or is it better to lease? Well here is why you are better off buying what you need:
1. Cost – The number one advantage to buying over leasing is the price. In the long run, it works out way cheaper to buy equipment than to lease it. Though it does mean an initial layout of a potentially large sum, rather than smaller monthly installments, you will save money when you choose to buy.
2. Interest – Most leasing companies include a very high interest rate in their price. When you choose to buy, you can purchase using a credit card, then it becomes your choice how much interest to pay each month and you can fluctuate it according to your income each month.
3. Tax – When you buy office equipment, you can deduct the entire cost of the equipment from your taxes in the first year.
4. Simplicity – It is a lot easier to buy – you pick what you need, buy it and it’s yours to use. Leasing can be complicated with endless paperwork and difficult terms to negotiate, which, if not done properly, can leave you with less than favorable terms.
5. Unwanted – When leasing equipment, you may be forced to pay for and store equipment that you no longer want or need until the lease is up. When you buy and own your machine, you can choose to get rid of the equipment when you no longer need it.
6. Maintenance – As the owner of your machine, you get to decide how much to invest in the maintenance of it. On the other hand, most leasing companies demand a certain investment on your part in the maintenance of a machine that is not even yours. In addition, you are forced to rely on the agreement of the leasing company and the wait times involved when something needs repairing, as opposed to fixing it immediately yourself.
7. Choice – When you buy, there is a whole market of machines to choose from. You are not limited to the stock of the leasing company.
8. Equity – At the end of the day, you own the equipment! This means you can make any changes you want to the machine. And more importantly, when you want to replace the machine, you have the choice to sell it and make some money back. When you lease, you have no equity at all so there is no chance to recover any of the costs.
Every company has different needs to consider. But do keep these points in mind when making this all important decision, so that you make the choice that is right for you.