Leasing Is Often Better Than Buying

Leasing Is Often Better Than Buying



Leasing is​ Often Better Than Buying
Leasing refers to​ an​ owner, or​ lessor, selling use of​ his property (equipment, automobile, home, or​ business) to​ a​ lessee .​
For many individuals, leasing is​ a​ good alternative to​ buying because leasing requires less equity and, therefore, more people have the qualifications to​ lease than to​ buy .​
For example, a​ $1 million piece of​ property may be too expensive for a​ business to​ purchase, so they lease it​ for $5,000 per month, which they are able to​ do with the profits they make.
Having the latest high-tech equipment is​ crucial for an​ IT company, so they may lease the best computers and have a​ continuing upgrade in​ their contract .​
This is​ much more cost-effective than regularly having to​ purchase the latest model, especially because computers are constantly being improved upon and the older ones become obsolete in​ no time.
Many other types of​ equipment, such as​ those used in​ construction, entertainment, weddings, and offices are typically leased to​ the user .​
Bulldozers, loaders, graders, and cranes are just some of​ the equipment needed when constructing a​ new building .​
If the building owner bought these items for the temporary use needed, he would spend hundreds of​ thousands of​ dollars needlessly .​
By leasing the machines, he is​ paying less and also being guaranteed service, repair, and maintenance on them .​
Equipment rentals are a​ big part of​ the entertainment industry, from a​ child’s birthday party to​ huge corporate events .​
Many parents lease massive waterslides, cotton candy machines, and moon walks to​ enhance their child’s party .​
Corporations trying to​ impress clients host big blowouts complete with extravagant light shows, live broadcasts, and other huge presentations, all requiring leased equipment .​
Weddings and bat/bar mitzvahs are other big sources of​ leasing needs .​
These events often require large amounts of​ silverware, linens, tables and chairs .​
Some even opt to​ have huge tents erected for their event, another leased product .​
a​ wedding typically has five or​ more vendors, all providing various leased services, such as​ catering, supplies, and music for the event.
Business offices must supply their workers with adequate equipment required to​ produce a​ huge amount of​ paperwork and computer files .​
Machines such as​ computers, printers, scanners, copiers, and fax machines are often leased because the lease contract provides the lessee with service and maintenance .​
Many contracts also include supplies, upgrades, and installation, all of​ which would be too expensive to​ buy individually .​
Leasing is​ much more cost-effective than buying in​ many of​ these situations.
Another item that is​ frequently leased is​ the automobile .​
There is​ a​ lot of​ debate over whether it​ is​ better to​ lease or​ buy a​ car .​
On the one hand, the lessee gets the best years of​ the automobile’s life at​ a​ slightly discounted price .​
But, of​ course, the buyer is​ able to​ sell the car at​ the end of​ its run, unlike the lessee, who must return it​ to​ the owner for no monetary return .​
Homes, such as​ houses, mobile homes, and apartments, are very often leased .​
This is​ a​ great option for a​ person who is​ trying to​ save money for a​ down payment on a​ home .​
It is​ also a​ good way for homeowners to​ profit without selling their property .​
Many people make their entire earnings from the process of​ buying dilapidated homes, refurbishing them, and leasing them as​ homes to​ others .​
Business leasing works similarly to​ home leasing .​
a​ person or​ company will buy a​ strip mall and lease each of​ the storefronts to​ different businesses, focusing on what sort of​ businesses will do well in​ the community and offering a​ variety of​ services on the property .​
The business owner would rather lease the store than buy it, because it​ is​ less expensive and the landlord will handle all service and maintenance of​ the building.




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