Differences Between Purchasing And Leasing

Purchasing and Leasing Students Name Institution Affiliation Date Purchasing and Leasing As the Business Communication Analyst, my role was to write on the differences between purchasing and leasing of the company’s equipment. Leasing is a legal agreement where the lessee is allowed to use a property or equipment for an agreed period in exchange for lease payment or money to the owner who is the lesser. While purchasing refers to acquiring something by paying for it. In purchase, the buyer possesses the item fully unlike in leasing (Koczur, 2014). Differences between purchasing and leasing the Company’s Equipment After studying the company’s scenario, it may decide to lease its equipment. This is because the Chief Financial officer prefers not to spend a huge amount of money which will is required to purchase new equipment. The company is growing with an increase in the number of employees who will need new laptops and purchasing new laptops for each employee will be costly compared to leasing which will be cheaper. Below are some of the differences in purchasing and leasing the equipment: Avoiding the risk of obsolescence: Computers and Tech equipment should always be up-to-date. This is due to changes in technology. By leasing the company will shift the financial burden of obsolescence to the leasing company. When the leasing period expires, the company will lease new, cheaper and faster equipment unlike in purchasing where they will have to keep the equipment and bear the risk of obsolescence and incur a cost in purchasing new updated equipment. Initial...