Having the latest technology is something we all want these days, whether it’s the best new TV, the most powerful computer, or the smartest smartphone. However, new tech often doesn’t come cheap.
Rather than buying new electronics, some people decide to lease them instead. Here are some of the pros and cons of each option so you can decide which is best for you.
Buying your electronics is usually easier to do because you simply choose what you want and buy it. There is no paperwork to fill out, no contract and no need to specify how it will be used. You just buy what you want and use it how you wish.
In addition, you own the item. This means you could sell it later to help you trade up to a new item. So, if you see a phone with the latest tech like Sony’s Xperia camera technology (discover more about this here), you can sell your own phone immediately and upgrade.
However, you will be responsible for looking after the item and paying for maintenance. This can be expensive, especially if you have equipment for your business.
There is also a higher initial cost than renting. You have to buy all of your tech upfront, and this can be difficult, especially for a business. Also, you may find that your electronics may go out of date fairly soon and you might not be able to afford new items.
There are both advantages and disadvantages with leasing. When you lease electronics, you always get the most up-to-date equipment. As soon as something new comes out, you can trade in your old item for a new one, as long as your contract has ended. This is great for things like computers and smartphones, where more powerful products are released at least once a year.
If you are running a business with lots of computers and other electronic devices, this can be especially worthwhile. You can ensure all of your staff have the best and latest equipment without having to spend lots of money on buying new products each year.
It can also be easier to budget when you run a business. You know how much you spend each month on your equipment with a monthly lease, and there are no unexpected costs, such as maintenance costs.
There are also no up-front costs involved, which can make it easier for you. Leases don’t usually require a down-payment, so you can get new equipment without having to spend lots of money upfront.
If you have a business, you can also compete better when you lease the latest equipment. And if you rent a personal item like a smartphone, you can ensure you always have the latest products to show off to your friends.
Although there are many benefits of leasing, in the long run, leasing tends to be more expensive. If you buy new tech outright and keep it for a few years, it will usually work out as cheaper.
Because you have a contract, you will have to pay for a certain amount of time. If you stop using the equipment, you will still have to pay for it until your contract ends.
Make Your Choice
These are some of the main pros and cons of both buying and leasing your electronic equipment. Whether you use tech for personal use or for your business, there are good reasons on both sides to purchase or lease, so use the points above to help guide your decision.
Josh Gilbert works as a personal finance consultant and has a passion for technology and gadgets that he knows often gets his clients into financial trouble. He combines the two topics in his online articles which appear on personal finance blogs mostly.