Factors to Consider
Significant factors to consider when choosing to lease or buy equipment are:
- Your cash — Hold or spend it; leasing preserves capital for other uses whether they are known or those that are unforeseen.
- Cost level — Instead of a large upfront dollar outlay when purchasing equipment, leasing minimizes it. Another way of asking that question is: “Do I have enough extra capital to spend today for something that will make me money (pay back) in months and years to come?”
- Equipment value — There is little financial benefit for leasing, when acquiring equipment under $5,000, due to fees ranging from $150 to $400 and higher rates for lower dollar lease amounts.