When it comes to acquiring IT equipment for your business, you’re faced with the decision to lease or buy. Both options have their merits, but understanding the total cost of ownership (TCO) can help you make an informed decision. In this blog, we’ll provide a detailed comparison of the TCO for leasing versus buying IT equipment, including tax implications and maintenance costs.
Leasing IT equipment typically involves little to no upfront cost, with monthly lease payments spread out over the lease term. Lease payments are often fully deductible as a business expense, providing potential tax advantages. Some leasing agreements also include maintenance and support services, which can help reduce additional costs. While the TCO for leasing is generally higher compared to buying due to ongoing lease payments, it can provide cost predictability and easier budgeting.