As business owners begin to bring their vision to life, they may start to run into problems they did not think of before starting. One question that most business owners come across is whether or not they should buy or lease the equipment needed for their business. There is no right or wrong answer, as every business is different.
If you do not have an unlimited capital, then leasing may be a better financial option, especially if the equipment may need to be upgraded often. If you are already an established business, it may be better to purchase your equipment if it has a long lifespan. Listed below are three different types of business essentials with quick tips on whether or not you should lease or buy them.
Forklift
Most experts will tell you that if you do not plan to use the forklift often (under 1,000 hours), you should purchase it. If you plan to use the forklift more often than this, and it may need a lot of repairs and service, it is better to lease so you can plan on repairs and replacements. This, of course, depends on the demands that will be placed on the machine on a day to day basis, and where you see your company going. If your company is set to increase in production, you might lease from the start. Forklifts are often a vital part of the operation, so it’s important to know if you’ll be buying through a company like Crown Equipment, or leasing through a local company that can perform maintenance when you need it.
Copy Machine
Similar to the forklift, it is suggested that you lease your copy machine if you plan to use a different model in the next few years. A copy machine is a pretty standard workhorse for any office and any other operation that needs to print or copy important documents, labels, or anything else. Again, depending on how much work it will be doing, you may be better off leasing than buying. If you need your copy machine to be as up to date as possible, leasing can help you upgrade every year or two. If you just need a reliable copy machine to do simple tasks for a long time, purchasing might save you some money. One benefit of leasing is that many companies that lease printers and copy machines can also act as a supplier for paper products and toner.
Company Cars
Because cars are a large purchase, there are numerous things to think about when making this decision. If you will be driving a lot of miles throughout the year, think twice before leasing a company car. Most companies will give customers an extra fee if they drive over a certain mileage. If you purchase your car it may also be tax deductible depending on your type of business. If you want your company cars to be the latest, and sleekest, then it might be better to lease so that you can trade in your cars when the lease is over.
If you are having trouble deciding whether or not to buy or lease your office equipment, take the time to sit down and work out the pros and cons for each situation. There are consultants at the equipment companies that can lay out options for you to help you make the right decision.
