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"BUY" or "LEASE" a software?

By jerome ·
what are the things that pushes someone to "LEASE" or "BUY" a software?

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"BUY" or "LEASE" a software?

by Ann777 In reply to "BUY" or "LEASE" a softwa ...

Do you mean software or hardware?

Generally people who consider leasing, do so in the main because of upgrades or obsolencence. They want to keep current without having to expend as much cash as trashing and starting over would cost.

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"BUY" or "LEASE" a software?

by jerome In reply to "BUY" or "LEASE" a softwa ...

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"BUY" or "LEASE" a software?

by RealGem In reply to "BUY" or "LEASE" a softwa ...

Leasing is very flexible. If you are planning to upgrade very often, or you are only looking for a short-term solution, then leasing is the way to go.

Purchasing is for those who are prepared to make a longer-term investment in a product.

There may be financial implications, too. Depending on the accounting standards in your country, leasing and purchasing are treated differently and can have different effects on your company's bottom line.

For example, when you purchase a computer, you depreciate it over a couple of years. The depreciation can decrease the amount of tax your company pays. With a purchase, you have a large cash flow up front, but you get some of it back in terms of the tax deduction.

With leasing, there's no depreciation. The lease payments are all expensed. However, there's no large up-front payment so your initial costs are lower.

If you are going to lease something, it may get more expensive than purchasing as time goes on. You need to understand how long you will be using that product before you can make a financial decision.

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"BUY" or "LEASE" a software?

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"BUY" or "LEASE" a software?

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