Should You Buy or Should You Lease Your New Computers?

Computers have become a very essential and integral part of the business world. The ability to stay abreast of the latest technological advances is paramount for businesses of all sizes. Due to rapidly changing advances in computer technology in particular, many businesses are now turning to leasing the computer systems that are required by their business and saving a ton of money by avoiding purchasing equipment that will be obsolete in just a few years. Whereas a computer system might cost $10,000 to purchase outright, the same equipment (or often better equipment) can easily be leased for a couple hundred dollars or less each month which leaves lots of room for savings, which is important to all businesses.

Other than the obvious benefit that computer leasing offers eliminating the need for a big investment of your capital to get the equipment you need now there are many other benefits. By avoiding a huge capital investment to acquire your computer system, you free up money that can used for other expenditures that your business might have. Leasing can reduce the total cost of ownership, also, for those who wish to purchase the equipment during or at the end of the lease.

Another reason that companies choose to lease their computer systems and equipment is that they have access to changing technology as it unfolds, which keeps them on top of their game. It seems that technology can change in just a few months, and computer leasing can give you the flexibility to upgrade with the changing times without absorbing the costs that are normally associated with keeping up with new equipment. Having top notch computer equipment and software allows your business to excel in a competitive business environment.

Additionally, computer leasing has advantages over buying because of the costs associated with servicing and maintaining your computer, which can be quite costly. Further, most leasing companies either maintain or offer you as a lessee insurance that covers any breakage, damage, or loss that might occur to your computer equipment while under lease. This protects you from the associated perils of fire, flood, wind and other natural disasters, and theft. This can be very valuable protection that you might not have access to when you purchase your equipment outright.

Another consideration for computer leasing is that you can realize lucrative tax benefits for your company that can be quite substantial. Most of the cost of leasing your computer system and equipment can be written off as a tax deduction under business expenses. Also, if you take advantage of the option to purchase your computer equipment at the end of your leasing period, your equipment is not considered as neither a business asset or liability but as an operating expense, which can also be written off on your taxes. With the numerous tax savings that you can receive when leasing, your equipment can nearly pay for itself in no time, which is just an added benefit to leasing versus buying your computer equipment or system.