The Equipment Lease-or-Buy Call
Decide leasing versus buying equipment
decide leasing versus buying equipmentoperationstool-agnosticfinanceequipmentleasingprocurementintermediate
Entry PT-0276 · full text · stolen 0 timesReceived
We need equipment and the lease-versus-buy math is fuzzy: [THE EQUIPMENT AND PRICE, LEASE TERMS QUOTED, EXPECTED USEFUL LIFE, OUR CASH POSITION, HOW FAST THE TECHNOLOGY DATES]. Make the call: the total-cost comparison at our real cost of capital (not the lease company's rate card), the tax treatment difference in plain terms, the flexibility question (lease wins when the tech turns over, buy when it lasts), the end-of-lease traps (buyout terms, return condition clauses), and the negotiation asks that move lease math by real points.
Inputs needed
- ■Price, lease quote, lifespan, cash position
What good output looks like
Real-rate comparison; tax difference plain; end-of-lease traps; negotiation asks
The stream (0)
Reading the room…