To Lease or To Buy, That’s the Question
Like many things in our highly advanced technological world, things quickly go out of fashion. And although leasing isn’t necessarily something that one would consider fashion, it’s maintained its place as a viable and valuable alternative to buying.

The complexity and confusion around leasing or buying is considerable. At one time, you could only lease new IT equipment, today you can lease both new and refurbished, turning leasing into an even more viable option. You must consider such aspects as whether the asset is worth refurbishing, worth selling and buying new, or leasing. Furthermore, you must also correctly calculate the value of your assets whether it’s depreciating IT assets, calculating residual value on equipment coming back off lease, or estimating an expected residual value at the beginning of a lease term or at any point during the lease.

At this time, the most important question facing your organization is: How do you fit the technology purchase into your budget? To make the right decision, many other questions need to be answered: What are the tax implications of leasing versus buying? Is it for the short term or long term? Do you want a fast turnaround? What is the best fit for your needs, new or refurbished? How often does the technology change, is it going to be out of date sooner rather than later?

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