Should you lease or rent?

High-tech equipment (such as computers and communications equipment) often becomes obsolete in a matter of years. Renting will give you the flexibility to keep it up-to-date.

The main difference between a rental and a lease is what happens at the end of the term.

With a lease, you pay a pre-determined ‘residual’ amount at the end of the term to own the equipment, which may then be obsolete.

With a rental, you don’t have to own the equipment so there’s no residual. That’s handy, especially if the equipment is likely to be obsolete at the end of the rental period.

At that point, you can choose to (a) rent at a lower rate, (b) upgrade to new technology, (c) offer to purchase at a fair market value or (d) return the equipment.

To understand which way is best for you, call us.

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