When you run a business, having the right technology to support your needs is imperative. Computers, printers, phones, and other business equipment help things run smoothly. But when it’s time to get new tech, you might wonder: should I lease it or buy it? Both choices have their pros and cons. Let’s take a look!
Leasing Technology
Leasing means you pay a set monthly fee to use the equipment for a set timeframe (i.e. a few years). It's like renting a car...but for your business equipment.
Pros:
- Smaller Upfront Cost: You don’t need to pay a lot of money all at once. This can help if your business is just starting out or you have other expenses.
- Always Have New Tech: At the end of the lease, you can upgrade to newer models. This is great for staying up to date.
- Easier for Budgeting: Since you know how much you’ll pay every month; it is easier to plan your budget. Lease payments are generally considered an operating expense. This means you can deduct the full monthly payment as a business expense on your taxes, reducing your taxable income.
- Match Technology Cycles to Lease Terms: Businesses like AOP offer lease options that match how quickly technology changes. With terms of 36, 48, and 60 months, you can set up your lease to refresh equipment when it’s needed most. This way, your business always has innovative tools without overspending.
Cons:
- You Don’t Own It: At the end of the lease, the equipment isn’t yours. You’ll either need to return it or pay extra to keep it.
- Can Cost More in the Long Run: The total of all those monthly payments might add up to more than buying the equipment outright.
- Limited Flexibility: You are locked in a contract, so if your needs change, you might be stuck.
Buying Technology
Buying means you pay for the equipment upfront, and it’s yours to keep it as long as you want.
Pros:
- You Own It: Once you buy it, it’s yours. You don’t have to worry about returning it or paying more later.
- No Ongoing Payments: After you buy it, there are no monthly fees. This can save money over time.
- More Control: You can sell, upgrade, or repair the equipment however you like.
Cons:
- Larger Upfront Cost: Buying tech can be expensive, especially if you need a lot of equipment.
- It Gets Old: Technology changes quickly. What you buy today might feel outdated in a few years.
- Maintenance Costs: If something breaks, you’re responsible for fixing or replacing it.
How AOP Can Help You Stay on Track
Technology is always improving. Devices today are faster and smarter than they were just a few years ago. To keep up, AOP offers lease options that work with these changes:
- 36-Month Lease: Great for fast-moving industries where tech upgrades are needed more frequently.
- 48-Month Lease: A balanced option if you want to stay modern but don’t need constant upgrades.
- 60-Month Lease: Ideal for businesses where tech doesn’t need replacing as often.
By syncing your lease term to your industry’s tech refresh cycle, AOP helps you stay efficient and competitive while keeping costs manageable.
What’s Best for Your Business?
The best choice for you depends on your business. If you want the latest tech and need to keep costs low at the start, leasing might be the better option—especially with options like AOP’s flexible lease terms. If you prefer to own your equipment and avoid long-term payments, buying might suit you better.
Think about your budget, how often you’ll need upgrades, and what works best for your team. Whichever option you choose, having the right tools will help your business grow!
