If you’ve never leased technology before, you might be apprehensive toward it. That’s understandable, because there are many misconceptions about it. It’s important to understand that leasing technology (hardware, software and services) is different than leasing a car or a home. Vehicle and home ownership are better than leasing or rental options because you gain equity from those purchases. However, with technology, all you get out of ownership is outdated equipment and the hassle of disposing of it. In one statement, the value of IT equipment is in using it; not owning it.


Here are three more benefits of leasing vs. buying:

  • Cash Flow. The biggest advantage of leasing IT equipment is that it helps you to acquire technology with a minimal upfront expenditure. Basically, you get the technology you need without significantly affecting your cash flow.
  • Tax Benefits. A second advantage is that your lease payments can typically be deducted as business expenses on your tax return*. Section 179 of the IRS tax code provides many advantages, but you’ll have to ask your tax consultant about that.
  • Obsolescence. If you’re not familiar with this term, it refers to the moment when you’re stuck with old, outdated IT equipment. With leasing, you can use a variety of end-of-lease options or pass the burden of equipment disposal to your lessor when your term is up. This frees you up to lease new, updated equipment when your lease expires.

There are a lot of other benefits like low, predictable payments, total solution financing (hardware, software and services), credit preservation and convenience. If you want to know more about the benefits of leasing, contact a VAR Technology Finance Leasing Specialist at info@vartechnologyfinance.com or call (800) 347-0628. * This is an independent opinion of VAR Technology Finance. Each business is unique and different; we suggest you consult your tax and legal advisors to confirm the tax benefits of leasing.