In the case of lease vs buy laptop, what’s the better move? How do leasing and buying equipment work?
Hardware expenses are always one of the tougher prices to pay for a business, because they are usually the last. You get yourself a location to operate of, pay all of the expenses for running your business out of that location, hire employees, pay for any other taxes and fees that might apply, and then you just need to buy the necessary equipment for your company to function.
There’s a huge variety of equipment your company might need, whether it’s an oven for a restaurant or a treadmill for a gym or a truck for your delivery business, and oftentimes this hardware can be costly. That’s why business owners look at their different options, like leasing versus financing the purchases of various types of equipment that they might need.
Leasing is a simple contract that involves you getting furbished equipment rented to you for a low, flat, monthly rate, while financing involves getting money loaned out to you to pay for your business that needs to be paid back with a set interest.
They both have advantages and disadvantages, but looking at a common case like lease vs buy laptop, which is the better choice for this particular equipment?
Could I just Buy my Equipment? Are there any Downsides?
Many business owners just end up buying their equipment simply for the value of ownership: there’s nothing like knowing you earned something, and having complete control over your hardware does have its perks. In addition, buying your equipment allows you to claim it as a business asset, putting more money in your pocket.
However, the advantages stop there: buying equipment isn’t always affordable, and getting a loan can put your business in serious hot water if the hardware you buy doesn’t provide the benefits you thought, or your business doesn’t work quite the way you wanted to.
Buying equipment is mainly detrimental in the sense that the vast majority of hardware either breaks down or becomes outdated after a set period of time.
So, if you spend all of your hard-earned money or, worse, put your credit on the line and get a loan just to get equipment that becomes a liability, it becomes a serious hassle for your business and could end up being the reason your company goes under.
Are there Disadvantages to Getting a Lease?
There aren’t ways to avoid every downside to buying equipment, but there are ways to avoid every potential downside of having a lease. However, it requires a little bit of business savvy, knowledge of the hardware you want and how long you’ll need it, and the ability to not settle until you get what you want.
A lease is essentially a deal being offered to you, and like any other deal, some are good and some are bad, and some are more ideal for your company than others. For instance, if you’re trying to determine whether you should lease or buy laptop and you need the laptop for five years, it’s best not to get a lease for ten.
As simple as it seems, many careless business owners make the mistake of getting a lease on equipment they don’t need for the duration of the lease and end up having to pay a high cancellation fee to get rid of the monthly payments.
These are the same business owners who won’t do the math and end up paying a total amount for the equipment that is ridiculously high compared to the actual price; many leases cost more than the actual product, but with the upgrades you get and tax deductibles, the net price is much lower for you.
Getting a good lease is all about being smart, being prepared for the lease you want, and not settling for a bad lease. There are options out there for your business, you just need to push and get them.
Who wins in the Case of Lease vs Buy Laptop?
One of the most common pieces of hardware is the laptop; used by many different businesses for a variety of purposes, from storing and distributing information to just general, everyday use in the business realm.
Having a good way to get multiple laptops without paying ridiculous prices for good laptops is extremely handy, and that’s why leases are generally the better choice in the case of lease vs buy laptop.
Buying a laptop means you’re stuck with that hardware well past its upgrade period, so if you’re willing to deal with that and want to own the laptop, purchasing it isn’t a bad idea.
However, leasing allows you to get good laptops in bulk that can be upgraded over time, all for low monthly fees. To learn more about whether you should lease vs buy laptop, click here.