Does it make better sense to buy or lease a new piece of equipment? That depends on several factors, such as the residual value of the equipment you intend to purchase, the amount of money you pay up front as a capitalized cost reduction and the cost of financing. A lease will usually be a more attractive option when compared to an equipment purchase when measured over a comparable term. Keep in mind that with a lease, you will have to return the equipment at the end of the lease term, whereas if you buy, you will own the equipment and will be able to continue driving it after the term expires.
Purchase or Lease Equipment?
Purchase or Lease Equipment
Monthly Payment |
Cash Flow |
P/L Expense |
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Monthly Payment |
Cash Flow |
P/L Expense |
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| Option | Cash Flow | P/L Expense |
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| Purchase Option | ||
| Lease Option |
This calculator is intended for informational purposes only and is considered an estimate. The accuracy of this calculator is not guaranteed by General Electric Credit Union (GECU). The calculator and its results do not constitute the advice of, or reflect actual products, services, rates, and/or terms available. Nothing contained in the calculator shall constitute an offer or solicitation of a product or service by GECU. This calculator is not intended to offer any tax, legal, financial, or investment advice. Please consult with qualified advisors to discuss your specific needs.