Purchase or Lease Equipment

Purchase Option
Monthly Payment
Cash Flow
P/L Expense
Lease Option
Monthly Payment
Cash Flow
P/L Expense
Cash Flow and Expense Comparison
Option Cash Flow P/L Expense
Purchase Option
Lease Option

Does it make better sense to buy or lease a new piece of equipment? That depends on several factors, such as the residual value of the equipment you intend to purchase, the amount of money you pay up front as a capitalized cost reduction and the cost of financing. A lease will usually be a more attractive option when compared to an equipment purchase when measured over a comparable term. Keep in mind that with a lease, you will have to return the equipment at the end of the lease term, whereas if you buy, you will own the equipment and will be able to continue driving it after the term expires.