Is it time for your office to bring in some new equipment? Are you using dinosaur computers that are more of a pain than a help? Or maybe you need to add equipment because you are growing. If any of this is true for your business, I’m sure you’re not excited about spending the money to make these upgrades. Consider the option of leasing the new equipment that you need instead of spending all of that money at one time. We have done the research for you on the pros and cons of buying vs. leasing.
Pros of Leasing:
Little to no down payment. No one likes to shell out the cash to buy new computers and some companies can’t afford to do so all at one time. This is usually especially with smaller companies. When you lease equipment you will have little to no down payment to worry about.
Predictable monthly payments. When you sign an agreement to lease equipment you are agreeing to pay a certain amount each month. With the predictable payments you can adjust your budget accordingly.
Stay up to date. This is also one of the main reasons people will choose to lease a car rather than buy it. You enter into a lease for a certain period of time. After that time is up, you are free to upgrade again to something new. When you buy, you are more likely to try to use a machine for its entire life. In a lease, the company that owns the machine has to worry about the major cost of replacing the equipment when it is no longer functional with other technology.
Keep up with your competitors. It takes the latest technology to be able to keep up with your competition. If you want to be able to keep and build your customer base, you will need technology that is on the same level or better than that of your competitors. In order to keep up without emptying your pockets, leasing can be the best solution.
Cons of Leasing:
Length of obligation. When you have entered a lease agreement, you are obligated to keep making monthly payments, even if you no longer need the equipment. Before entering into a lease, do the research to make sure the equipment will be useful to your company for the entire term of the lease.
Pay more long term. The main reason why people usually decide to buy equipment rather than lease it is that you will always end up paying more in the long run. You also don’t come out with anything in the end. You’ll be putting cash toward something that you’re most likely to give back to the company leasing you the equipment at the end of your lease.
Pros of Buying:
Simplicity. It is much easier to decide you want something and go buy it. You make the payment and it’s yours. Simple as that.
You can make changes to the equipment. Say you need to upgrade the memory in your computer, or you want to add a better graphics card. When you own the equipment you can easily do that but when you lease it must be returned the way it was when you first picked it up.
Cons of Buying:
Initial cost. The initial cost of buying is going to be the main concern. You may have to take out a loan or give up spending money on other things you need in order to make the purchase.
Quickly aging technology. Technology in general does not have a long life span. In order to keep up to date you are going to need to replace your equipment quite frequently. When you are done with the equipment you are then stuck with something you either have to dispose of, donate or try to sell.
When exploring your options in leasing or buying equipment for your business, call NetComplete at (407)409-7274.