{"id":4214,"date":"2025-03-04T06:26:59","date_gmt":"2025-03-04T06:26:59","guid":{"rendered":"https:\/\/jhco.co.za\/?p=4214"},"modified":"2025-03-04T06:27:02","modified_gmt":"2025-03-04T06:27:02","slug":"5-things-to-consider-when-buying-vs-leasing-equipment","status":"publish","type":"post","link":"https:\/\/jhco.co.za\/upgrade\/5-things-to-consider-when-buying-vs-leasing-equipment\/","title":{"rendered":"5 Things to Consider When Buying vs Leasing Equipment"},"content":{"rendered":"\t\t
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As a business owner or financial manager one of the most important decisions you will make is whether to buy or lease the equipment your business needs to operate.<\/strong><\/p>

This decision could have far-reaching financial consequences, particularly for smaller firms \u2013 so it must be taken seriously. Here are five things to consider when deciding whether to lease or buy.<\/strong><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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\n\t\t\t\t\u201cI do not gather things, I prefer to rent them rather than to possess them.\u201d \t\t\t<\/p>\n\t\t\t\t\t\t\t

\n\t\t\t\t\t\t\t\t\t\t\t(Jerzy Kosinski, Polish-American writer)<\/cite>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/blockquote>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Deciding whether to buy or lease equipment can sometimes seem like an impossible choice. There are so many factors at play that it can feel like whatever you do will be wrong. We\u2019ve put together a short list of five things to consider that should make the process a little easier.<\/p>

1. When do you need the money?<\/b><\/p>

Leasing has lower up-front costs than buying, but in the long term could end up costing your company more. Leasing can make it easier to conserve working capital and maintain a stronger cash flow, especially in the early days. However, if you buy, you will eventually pay the equipment off meaning your long-term costs will drop.<\/p>

2. Are you going to need to upgrade?<\/b><\/p>

Will the equipment you are looking for need to be upgraded? Or is it something you can use, as is, for years? Leasing equipment often comes with the option of upgrading it on the spot when newer versions come out. This gives companies more flexibility and the chance to be fully up-to-date at all times. If you\u2019re sure of the long-term efficacy of a machine, however, it may make more sense to buy.<\/p>

3. Are there tax benefits?<\/b><\/p>

Some products will provide more benefits come tax time than others with deductions on offer for both leasing and buying. As your accountants we can help you to understand the exact implications of renting\/buying your particular equipment and the amount and timing of tax relief that is available.<\/p>

4. Do you want to pay for maintenance?<\/b><\/p>

Leasing equipment can often mean that you don\u2019t have to worry about maintaining it. While this will undoubtedly be built into the cost of your leasing contract, there\u2019s great comfort in knowing that the maintenance is taken care of \u2013 and that if something goes really wrong you can get an immediate replacement. Do just check your lease agreement for any exclusions or restrictions \u2013 there is often an exclusion for \u201cdamage due to client negligence,\u201d for example.<\/p>

5. Do you need to customise your equipment?<\/b><\/p>

If you lease your equipment, you probably won\u2019t be able to customise it. It makes sense that the rental company needs to be able to lease the equipment to someone else when you\u2019re done with it. If you own a machine you can generally do with it as you like, meaning you can take care of your special requirements.<\/p>

The bottom line<\/i><\/b><\/p>

Choosing between leasing and buying ultimately depends on your business\u2019 unique set of circumstances. To get the best advice please consult with your accountant \u2013 we\u2019ll be able to lay out all the financial repercussions of your decision.<\/b><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

As a business owner or financial manager one of the most important decisions you will make is whether to buy or lease the equipment your business needs to operate. This decision could have far-reaching financial consequences, particularly for smaller firms \u2013 so it must be taken seriously. Here are five things to consider when deciding […]<\/p>\n","protected":false},"author":1,"featured_media":4227,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14,13],"tags":[],"class_list":["post-4214","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-financial"],"_links":{"self":[{"href":"https:\/\/jhco.co.za\/upgrade\/wp-json\/wp\/v2\/posts\/4214","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jhco.co.za\/upgrade\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jhco.co.za\/upgrade\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jhco.co.za\/upgrade\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/jhco.co.za\/upgrade\/wp-json\/wp\/v2\/comments?post=4214"}],"version-history":[{"count":4,"href":"https:\/\/jhco.co.za\/upgrade\/wp-json\/wp\/v2\/posts\/4214\/revisions"}],"predecessor-version":[{"id":4218,"href":"https:\/\/jhco.co.za\/upgrade\/wp-json\/wp\/v2\/posts\/4214\/revisions\/4218"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/jhco.co.za\/upgrade\/wp-json\/wp\/v2\/media\/4227"}],"wp:attachment":[{"href":"https:\/\/jhco.co.za\/upgrade\/wp-json\/wp\/v2\/media?parent=4214"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jhco.co.za\/upgrade\/wp-json\/wp\/v2\/categories?post=4214"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jhco.co.za\/upgrade\/wp-json\/wp\/v2\/tags?post=4214"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}