What are the advantages and disadvantages of leasing a computer versus purchasing one?
Computer technology is one of the frameworks of modern day society, and every business and household out there takes advantage of using at least one form of computer technology. Nowadays, everyone has their own computer, and many have that kind of technology in the form of a laptop or a smart phone for their convenience.
Computers have come a long way in the last few decades, becoming extremely high speed and effective, and proving to be a serious advantage for just about anyone to have. In fact, many businesses out there depend heavily on having the best computer tech available, but, despite the prices dropping for technology over time, good high speed computers are still fairly costly.
Some businesses just need a computer for their books or for some minor task, but many businesses absolutely depend on their computer equipment and want only the best of the best.
So, when looking at the advantages and disadvantages of leasing a computer versus purchasing a computer, what’s the better option in general for businesses? In what instances is leasing the better option, and in what cases is purchasing the best choice?
Buying your Computer Equipment
The best way to look into purchasing a computer for your business is to think back to a time when you bought your own personal computer. Naturally, the purchase depends on what you needed at the time, but generally people tend to purchase themselves a laptop, usually under a grand and in fairly good condition.
Of course, the equipment was expensive at the time, but you get a very useful tool out of it so the purchase is no issue. However, that laptop can’t and won’t last forever; at some point within the next five years, that computer will either break of become lower quality to the point where it’s a guarantee that you’re going to replace it with a better model.
Again, you’ll probably end up spending a few hundred dollars on the computer, but spending that much money every half a decade really is no issue, especially for such a handy tool. However, switching to your business, imagine your company needs ten or more computers, and they need to be far better than your home machine; the game changes quite a bit.
The purchase becomes more detrimental in the sense that your purchase isn’t permanent and, in a few years, you’re going to pay a much larger sum of money to get the equipment. There’s no easy way to get this money because a loan, the only real alternative if you’re low on funds, is very high risk, especially when you’re dealing with loaning a large sum of money.
It doesn’t matter how low your interest rate is; if you need to loan a lot of money, your interest is going to accumulate much faster, and that’s money that’s tough to pay back, especially for relatively newer businesses.
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Advantages and Disadvantages of Leasing a Computer
Many businesses enjoy getting a lease because they don’t have to deal with those repercussions of paying to repair or replace equipment once it loses its quality; plus, the payment setup is much more convenient. With a flat monthly rate, you don’t have to deal with heavy interest rates or large payments, making life much more manageable for you as far as your business’s finances.
Plus, leases offer you advantages in the sense of you being able to get an upgrade on your hardware over time, meaning you can get the best new tech for your company.
Of course, there are both advantages and disadvantages of leasing a computer, with the disadvantages being that a lease is a contract, and contracts can be designed in such a way that they’re more suitable for someone else and not you. In that case, it’s extremely important that you examine the lease as a whole, contract terms and all, to determine whether the lease is good for your business.
As long as the contract period, lease rate, and other caveats are suitable, a lease can easily provide your business with an edge in getting the computer tech it needs. To learn more about the advantages and disadvantages of leasing a computer, click here.