Should you lease or Buy Office IT equipment?

Should you lease or Buy the Office IT equipment? : Intelligent Computing
When you are owning an office and you have to deice if you should buy the dynamically required office IT equipment or Lease it and get related after making payment, you should go through this and choose what best suits you.

Most businesses today are in need of computers for several purposes. A computer is unavoidable in day-to-day manners. You have a business too and in need of computer equipment. All you are confused about is should you buy the equipment or lease it. Which has more benefits? Which has disadvantages overshadowing the benefits? You are unable to decide. Do not worry. Just keep reading. A detailed pros and cons list of both the options follow. All you need to do is read it and identify what serves your purpose more, and you will have the answer - Lease or Buy!

Advantages of Leasing –

1. Up-to-date Equipment:

If you decide on leasing the equipment required for your business, the most important benefit that you will have that most leased equipment is up-to-date. They will be well configured and all the hardware and software will be the latest available. Definitely, this can be a huge advantage if your business deals with a lot of I.T. work.

2. Sophisticated Technology at Comparatively Lower Prices:

Most small businesses have very less funds at their disposal. If they buy, the most they can afford is outdated equipment. Lease is a perfect option for them since they can afford the lease price and get sophisticated equipment at the same time. This also helps these small businesses to catch up with their competitors and even bigger businesses.

3. Pre-determined Monthly Expenditure:

Leased equipment requires expenditure per month that is pre-determined. Nothing extra has to be paid regarding maintenance or any other reason. This helps the businesses to plan a monthly budget more efficiently and thus at times increasing profits.

Disadvantages of Leasing –

1. More Payment in Totality:

 Although, leasing will require less investment in a bulk, if one looks at the total amount paid in the long run, one has to pay more than buying the equipment. This may seem as not such big a problem by many, but the truth is that the capital paid extra to lease the equipment could be used to benefit the business in other ways.

2. Ghost Payment:

If one has to pay for something even if the person is not using the utility s/he is paying for it is called a Ghost payment. Many a times a business firm may no longer require particular computer equipment at their disposal any longer. At these times a firm owning the equipment can sell it. However, a firm that has leased the equipment will still have to keep paying for the period mentioned in the contract even after not using it.

Advantages of Buying

1. Buying is a Simple Process:

To buy the equipment, all one has to do is to decide what one needs to purchase and then purchase it. Whereas for leasing the equipment a long range of paperwork follows. Leasing companies often demand for financial background details and a lot of other requirements are needed to be fulfilled. Also, it is advisable that one gets the lease contract revised by a legal adviser to understand all the terms well, so that the firm to whom the equipment is being leased does not face unprofitable terms

2. Maintenance Will Not Require Regular Expenditure:

When one owns the equipment, the maintenance expenditure depends on the owner. The owner may decide to take up a regular maintenance plan with a computer maintenance firm of their choice. They may also decide to not follow a regular plan. This is contrary to how leased equipment is maintained where the firm has to follow the maintenance demands of the leaser.

Disadvantages of Buying –

1. Huge Expenditure at One Go:

Buying all the I.T. equipment required by a business is a huge investment. Small businesses find it extremely taxing to spend that big an amount. Leasing seems a better option there.

2. Outdated Equipment:

After a point of time the equipment will get old and outdated in an ever evolving I.T. world. If one has bought the equipment then s/he is stuck with it. Selling it and buying new upgraded equipment also requires a lot of capital at the disposal of the firm. Leasing solves all these problems while not having to spend as much in one transaction.

Author Bio:

This guest post is written by Sanjay Motiani. He is a blogger for Silicon Group ( He Likes to write about various technologies ongoing related to Computers, Laptops and Hardware.

Dheeraj @thedijje

Dheeraj @thedijje


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