Is it smarter to buy or lease equipment?


Two white photocopiers/fax machines in a white room

When it’s time to determine if buying or leasing equipment is better for your company, consider these factors first.

Are you faced with a decision on buying vs. leasing equipment? These questions will help you decide which is best for your business. 

How important is technology to you?

If having the latest technology in computers, machinery, heavy equipment or vehicles makes your work more effective, leasing may be the way to go. When your lease is up, you can upgrade to the newest models.

With buying, the equipment you have is what you’ve got­ until you replace it—and that may be perfectly fine. When you own the equipment, you can modify it any way you want. And, you’re in charge of maintenance standards.

How important is choice to you?

A leasing company will have a limited number of models to select from. When you buy, everything on the market is available.

What will the total cost be?

Leasing is attractive for many reasons, including:

  • Lower upfront costs
  • Leasing company covers maintenance
  • Less risk with trying something new

However, leasing is generally more expensive over time.

The advantages of buying include:

  • No monthly payments if you pay cash upfront
  • Option to finance with a commercial equipment loan so you can build equity (you can use the equipment itself as collateral)
  • You can resell the equipment for cash when you no longer need or want it

The biggest drawback to buying is the initial outlay of a lump sum.

To see side-by-side costs, check out this calculator that compares the cost of leasing vs. buying.

Are there tax incentives?

Whether you lease or buy, some equipment qualifies for tax incentives. Section179.org is a free resource that helps small and medium businesses understand and utilize tax deductions.

Can Consumers help me?

Of course! Our business development managers love to help business members determine if it’s better for them to buy or lease. Give us a call at 800.991.2221 or send a message online.


Federally insured by NCUA


Leave a Reply

Your email address will not be published. Required fields are marked *

Enter your email address to receive notifications of new posts by email.
Get awesome new content delivered straight to your inbox.