Should You Lease or Buy Office Equipment?
December 4, 2010
There are a number of ways to purchase office equipment, including copiers and printers. You can:
- Purchase outright.
- Finance a purchase.
All have their advantages and disadvantages. Whichever the case, consult your financial adviser (if you have one) before making any long-term decisions. Let’s explore each briefly:
- Purchasing outright means you have to use your cash. If you have it, it might be the best option.
- Financing the purchase means you are taking out a loan to buy the product. As with the first choice, this also means you have a capital piece of equipment to consider as a part of your inventory.
- Rental is just that–a monthly or quarterly fee to use a machine that you give back at the end without any value.
- Leasing is probably the best option–you pay out regular payments with some kind of service contract attached or rolled in. At the end of the lease it has a value you can either use as a trade-in or to refinance and continue the lease.
Whatever you choose to do, it should fit your business and tax planning.
The Business Farmer