Lease, Rent or Buy



easing is a form of financing the capital component of a copier that relies on spreading the cost across a number of payments over a fixed lease term. Similar, but different to rental plans. A finance lease is what is normally offered by vendors and relies on a set “residual” to determine the rates (i.e. monthly lease charge). At the end of term, payment of the residual amount (usually expressed as a percentage of the purchase price) will transfer ownership of the unit from the finance company to you.

An operating lease is different from a finance lease in that there is no obligation for you to payout the residual and assumes ownership of the goods at the end of lease term. You may, however, be able to purchase the goods at fair market value, 10% and dollar buyout. In simple terms, an operating lease is like a rental scheme but with more flexible end-of-lease options.



ental is a form of financing the acquisition of a copier that relies on spreading the cost across a number of payments over a fixed rental term. Similar, but slightly different to a lease plan. Rental differs from a lease plan in that there is no residual amount that can be paid at the end of term and assume ownership of the unit. Usually, the unit is returned to the vendor.



uying equipment is easy–you decide what you need, then go out and buy it. When you buy the equipment outright, you determine the maintenance schedule yourself.Section 179 of the IRS code lets you deduct the full cost of newly purchased assets, such as computer equipment, in the first year.

**Ultimately, a few simple rules of thumb may help you decide. If your equipment requirements are relatively small and you have the money–or can get a low-interest loan–then just buy it. You’ll save money in the long run. However, if you require a substantial amount of equipment, such as computers for your new company’s 10 employees, leasing may be a better option.

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