Leasing or out-right purchase?
sighing up to a hire agreement that allows you to hire the equipment
for a specified period (after which it is reclaimed by the lease
company). After that period you are able to up-grade to a new
piece of equipment, thus keeping your equipment up to date and
reliable. This is the most common way of getting an expensive
photocopier or printer (usually anything over a £1000) as
it allows you to spread the cost over a period of time, say 5
years; it is also more tax effective. Leasing is subject to interest
in the same way as borrowing money from the bank or higher purchase.
Out right purchase
is more expensive in the begging but can work out the better option
in the long run. If you intend to keep your equipment for a long
time, find it financially beneficial, need equipment that is less
than £1000 or simply don't want the long term commitment
of a lease, then out-right purchase is the answer.
The overall financial difference
between the two options is surprising little over a 5-year period
(usual lease period and considered useful life expectancy of most
photocopiers). When you add in the overall interest paid on a
lease compared to the out-right purchase price, any yearly tax
advantage is almost cancelled out by the interest paid.
To sum up both
options have their benefits it's simply a case of what suit your
needs. Basically leasing allows you to spread the cost over a
number of years with no capitol outlay. Out-right purchase on
the other hand limits your monthly outgoings and means you own
the equipment, and therefore can decide when to replace it. More
information on leasing