Deciding whether to lease or buy your equipment could be difficult. You must consider factors like budget, use cases, and estimated lifetimes for the devices you want to procure. Then, there are tax considerations.
While leasing involves lower initial costs, buying may be more profitable in the long term.
Ultimately, the decision rests between CapEx (capital expenditure) and OpEx (operating expenditure). Which of the two offers a better ROI and tax benefits? We understand the choice means walking a tightrope.
That’s why we weigh the pros and cons of buying and leasing office equipment to help you decide which is best for your business. Let’s get started.
TLDR;
- Leasing or buying equipment could be a tough decision for businesses, as they face challenges with predicting future needs or understanding what best suits their current cash flow.
- Leasing allows ownership of equipment at fixed intervals. While it has lower initial costs and efficiency, it can exceed the total cost of owning assets over time. Moreover, contract terms and conditions could prove to be a headache.
- Buying equipment involves a significant initial investment. It’s more suitable for well-established firms. It allows for greater customization of your equipment and keeps you more in control.
- Both leasing and buying allow tax deductions, and your accountant can best explain if OpEx(leasing) or CapEx(buying) is a better deal for your business.
- Workwize is a unified global IT hardware management platfrom to buy, rent, or lease laptops and other IT equipment or peripherals across 100+ countries. No need to negotiate, manage multiple vendors, or bear custom fees; Workwize does that for you!