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For a high-technology item like computer equipment is the lease option preferable from the very outset Why or why not?
Wiki User
∙ 18y ago
"For a high-technology item like computer equipment is the lease option preferable from the very outset Why or why not?"
Wiki User
∙ 18y ago
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For a high-technology item like computer equipment is the lease option preferable from the very outset?
That's not easily answered, and is more of an accounting question. We need to know: How long you intend to keep the computer What is the "usefull lifetime" of the computer The initial cost The matinence cost The selling price or disposal cost Usually buying is preferable because upgrads can be done cheep if you know where to go. If you have a large business, leasing can be preferable because upgrading and matinence is less of a problem. If you intend to keep the computer for a long time, definatly buy. If, for your purposes, the usefull lifetime of the computer (i.e. will it be too slow for you next year, thus making you unable to keep up with business competition), the leasing is probably preferable.
For a high technology item such as computer equipment is a lease option preferable to buying and why or why not?
Definitely Buying as a general guideline, and in most cases . However, if you plan to use your computer for a short period and then return it, or if for tax expenses purposes, your accountant could tell you that a lease is may or may not be a better way(in your case), because considered as an expense for your business. Do not forget that if you lease, you can choose an option to buy the computer and use already the amounts paid(or portion of them) to pay the machine. Today a good computer is not that expensive to justify the option of a lease. I hope to have answered your question
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