What’s your monthly budget? While equipment leasing offers lower monthly payments as compared to financing a purchase, it is still important for you to evaluate your budget for the entire lease or finance period. An increasing budget may allow you to pay off a purchase early and own the equipment, while a stable or lower budget may favor leasing.
How long will you be using the equipment? If the use will be short-term, equipment leasing will probably be the most beneficial, cost-effective way to go. Once the lease term has ended, you simply return the equipment to the leasing company and consider leasing newer equipment. However, if you plan on using the equipment for a very long time it may be best to consider a purchase loan.
Will the equipment become obsolete quickly? Things like technology tend to become outdated quicker than other kinds of mechanical equipment. If you feel that the equipment you need should be updated often, equipment leasing will probably make sense. Business equipment such as computer-operated machinery easily fall under this category.