Advantages of Leasing Technology
It is 2015 and let’s face it technology has become a necessity in almost every aspect of your life. This is a harsh truth to some people, but so is the fact that if you want the best technology it sure doesn’t come cheap. Is your business in need of network equipment? How about a video wall in your lobby? Chances are you can be looking at a substantial investment. What if you just don’t have that sort of money when you need it most? Leasing technology quickly becomes a pretty appealing option.
SAVING You Money
Let’s say you are the facilities manager at your company and you need to look into buying a video surveillance system to monitor the grounds. To acquire a proper system fitting both your needs and your wants, your system has a price tag of $60,000. Your company definitely needs this system, but just doesn’t have that money to spend right now. By leasing this surveillance system your company can get the exact system you want and need today and pay it off over a specific time frame with a pre-determined monthly cost. Plus, more than likely there will be no down payment to begin with. You can spend that total of $60,000 over the entire lifetime of you using it opposed to dropping that serious amount of money all at once. By leasing this technology, you conserve your capital. By not buying the system upfront, you free up that money you would have spent otherwise. This way, you not only get your video surveillance system, but now have additional money to spend in other areas that also need it.
Keeping You Up-to-Date
In today’s world your brand new cutting edge technology could become outdated by tomorrow. You buy a brand new phone and within months, or weeks now it seems, an even newer phone comes out with much better features that is miles ahead of the one you just purchased. We have all been there. Being stuck with outdated technology is just a common burden that cannot be avoided. Leasing technology gives the buyer the option to update their current equipment when their current lease is up giving them the freedom to periodically have the most up to date products on the market. When your lease agreement comes to an end you simply pick from the current options available and begin a new lease agreement. Plus, since the technology you are leasing will never be outdated, you are also saving yourself the expenses of necessary repairs. If you are stuck with technology that you bought up front, the longer times goes on the more and more that equipment will need to be repaired and maintained, thus saving you even more money.
When tax time rolls around, the IRS lets you deduct the full cost of all newly purchased assets in the previous year. This does not only mean equipment you purchased upfront, but it also includes equipment you leased. Select lease structures are 100% tax deductible. The entire cost of you leasing your equipment can often be reported as an expense item when its income tax season and could potentially give you a larger tax deduction. Also, when looking to take out a lease on equipment or technology, most financial services can turn your transaction around in one day’s time. Depending on the size, the much larger transactions are often given high priority. Financial Services not only make the transaction smoother, but also save time and resources making it as hassle-free as possible. In addition, depending on your type of organization, you can qualify for additional benefits. For example, School Districts have an even greater advantage when leasing due to tax-exempt and flexible payment lease programs that lower the costs of ownership even further down. Schools have tight budgets as it is, they can’t afford to buy equipment upfront in most cases, so in addition to the money leasing will save them additional programs will also save them even more. Faculty, staff, students and parents can definitely appreciate a school with the most up to date technology without the large financial burden of paying for it all at once.
In the grand scheme of things, leasing technology makes the most sense, especially for education and government customers. Municipalities and schools definitely need up-to-date technology and just can’t consistently afford or be as efficient by purchasing that equipment outright when compared to leasing it. Leasing gives you more money to work with now which is crucial in today’s economy. The advantages of leasing become extremely beneficial not just when it comes to affording the equipment, but also using it given you will always be using current technology that will rarely need repairs, let alone replacing.