Should You Lease New or Used Equipment?
Most businesses run on having the right equipment at the right time. Whether you are in construction or retail, having the right tools to do your job can mean the difference between making a profit and going out of business. With equipment leasing, you can find the right makes and models of the equipment that you need, for less up-front than buying the same items.
New or Used?
When it comes to equipment leasing or buying, it is a good idea to first decide whether you need new or used units. If you need the newest and best of everything that you use, then you will probably be looking at higher rates than if used items will work. Some equipment is refurbished by the owner between leases or sales and comes with a guarantee written into the sale or lease. This can help you be more confident in the used items that you get. Other types of equipment, however, will only have a short viability between when it is developed and when the latest technology comes out.
Lease or Buy?
One of the biggest questions you may have about getting equipment is whether to purchase it or buy it. Both options have come very valuable benefits as well as a couple of detractions. For instance, when you lease equipment, some of the burden of ownership resides with the company you got it from, taking that off your plate; however, this means that you have to wait until the end of the lease to get a newer model.
Generally speaking, if you need to get a large amount of equipment in a short amount of time, then leasing can be more cost effective than purchasing. It can also be more effective if you need seasonal equipment and do not have anywhere to store it during the off-seasons. This is because you can set your lease terms for just the period of time when you need the equipment and return it when you are finished.
Equipment leasing, for both new and used units, can be one of the most cost-effective ways to get the items that you need when you need them. For start-ups, leasing can be the only way to get your doors open before the funding runs out, especially if you need many expensive items to run the company. With leases you can sometimes upgrade your equipment after each term to the newest and best without having to figure out what to do with the old items.