Posted by 2013-10-02
Title: Manufacturing equipment. Lease or Buy?
I need to purchase new manufacturing equipment. Is it better to lease or buy?
Begin with the net cost of each (including tax deductions & resale value), your available capital, & the expected lifespan of the equipment. Then consider contract details like maintenance & how quickly the technology will become obsolete. It's usually safest, but more expensive, to lease.
IMHO leasing seems reasonable. Buying seems like a heavy investment.