Vanguard Capital Partners

Why Lease?

Whether you should lease or buy is a critical question. The answer depends on the purpose of the equipment and its role in generating revenue. Putting it into perspective, an employee generates revenue for your company but you would not pay an employee's salary in one lump sum. Yet, when you purchase equipment, you are essentially doing the same thing.

Think about the rapid change in technology just during the past several years. Sinking large sums of cash into equipment every couple years is unproductive especially if the equipment becomes obsolete. The cash could be used for other opportunities. This general rule of thumb might help" "Buy what appreciates, lease what depreciates."