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Buy vs. Lease computers

what is the break even point?

         

Acternaweb

12:20 pm on May 13, 2004 (gmt 0)

10+ Year Member



do you where I can find a chart that shows when it is better to buy vs lease computer equipment?

Meaning at what point is it better to buy a computer outright than to lease/rent it.

raywood

1:06 pm on May 13, 2004 (gmt 0)

10+ Year Member



I would not think a chart would do the trick. The decision depends upon lots of variables. Your available cash, your tax situation, the fair market value of the computers, the price, the salvage value, the length of time you expect to keep them in service, the type of business entity, etc.

There are too many consequences resting on the decision. A leasing company will gladly show you how leasing is the best idea, but you should get an accountant to analyze the deal for you.