To lease or to buy? That is the question many companies face when it comes time to deciding on office systems such as phones, computers and other information technology equipment. Leasing can be a feasible, cost-effective alternative to purchasing equipment, particularly in the desktop and laptop computer areas. The decision on whether to lease or purchase equipment should be made by conducting a cost-benefit analysis of the leasing and purchasing alternatives.

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If done correctly, for the right reasons, leasing can be an efficient and cost-effective alternative to purchasing. If handled poorly, leasing can be more expensive and harder to manage than an outright purchase.

Some reasons a business may want to lease equipment include:

• Helping to ease budgets
• Facilitating standardization efforts
• Providing an effective disposal strategy for used equipment

• Inability to strictly adhere to contract length, term and conditions
• Unacceptable risk of signing a multi-year contract committing to one vendor
• Lack of negotiation or contract management skills

Using this information, a business can calculate the respective expenditure of leasing or purchasing equipment.