For those that are running a business, they have to be constantly making decisions as to what is going to be cost-effective for their business operations. One of these decisions may be as to whether they should lease their hardware or buy it.

The Benefits of Leasing

If the business is going to lease the hardware, then it must understand what the benefits of this are going to be. Some of these are as follows.

  • The Most Up To Date: Everyone is well aware that hardware can become outdated quickly. When leasing this type of equipment, the business can take advantage of leasing the most modern equipment. Short term leases are common for this type of equipment. For example, a typical lease would be for two years. Which means at the end of this term, the business can turn in the leased equipment and replace it with newer versions.
  • The Cost: Not every business can afford to buy all their hardware at once. Leasing allows for the cost of this to be spread out over the term of the lease. The monthly payments are easier to handle.

The Benefits of Buying

The benefits are buying usually focus on those business owners who prefer to have ownership over their hardware as opposed to just leasing it. Also, the owner of this equipment can claim it as an asset.


Another important factor in leasing is maintenance. Different contracts can be negotiated concerning this.

Tax Implications

For tax purposes leasing or buying hardware are each accounted for differently. The leased hardware may be able to be claimed as an expense for the year. Whereas with the purchase, only a percentage of the total cost can be claimed each year.

Making the decision is going to come down to what is best for the company, but in most cases, leasing is the better option.