Lease or Purchase a Copier in Colorado Springs?
July 22, 2014//Comments Off on Lease or Purchase a Copier in Colorado Springs?
Pros and Cons of Leasing and Buying Equipment
The initial cost associated with leasing equipment is typically less than purchasing it outright. This enables companies to acquire equipment that they might not otherwise be able to afford as well as upgrade sooner. Lease payments may be a tax-deductible expense, which lowers the net cost of the lease. The lease agreement may have more flexible terms than those of a loan used to buy the equipment. The disadvantages of a lease are higher overall costs, your Colorado Springs area business does not own the equipment and you may be obligated to continue paying the lease, even if you no longer need the equipment, unless the lease has a buyout clause.
While the initial outlay may be higher, there are tax incentives for purchasing new equipment. It may be possible to deduct a depreciation allowance on your income tax. When you own the equipment, you can sell it if you no longer need it and the piece of equipment is not obsolete. When evaluating whether to lease or purchase a piece of equipment for your Colorado Springs Area business, ensure that the cost information is comparable.
