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What are the advantages of leasing over purchasing (financing)?

 

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Question:

What are the advantages of leasing over purchasing (financing)?

Answer:

The advantages of leasing are:
  • No down payment
  • No large cash outlay
  • The low, fixed monthly lease payments are a hedge against inflation
  • Lease payments come out of pretax income, instead of after-tax profits.
  • The rule of thumb is: buy what appreciates, lease what depreciates


Since your bank lines are untouched, and there's no down payment, leasing frees working capital so you can run your business more productively. You can usually qualify for a lease, up to 150K, faster than you can fill out the forms for a bank loan.





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Comments:

2013-01-19, 04:12:50
anonymous from South Africa  
not factual
2013-06-07, 11:46:22
anonymous from Pakistan  
rating
thank you :)

 

 

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