Owning Equipment requires the owner to be responsible for the entire life of the equipment.

Leasing equipment requires the user to be responsible for just as long as he or she is using and in possession of the asset.

Owners must manage all insurance, taxes, interest, and maintenance costs.

In many leases, the burden of these costs are managed by the lessor.

Owners bear all risk of equipment devaluation. Obsolescence and depreciation must be tracked by the owner as well.

The end user transfers all risk of obsolescence to the lessor since there is no obligation to own the equipment at the end of term.

Owners must manage the disposal or selling of outdated equipment, which can slow down upgrades or new equipment acquisitions.

Leasing allows for easier upgrades, especially Master Leases, which allow for additional equipment to be acquired through automatic upgrades.

Owners must manage asset liabilities on their books because finance accounting standards require owned equipment to appear as an asset with a corresponding liability on the balance sheet.

Because leased assets can be expensed in an operating lease, these assets do not appear on the balance sheet. This can improve financial ratios, such as Return on Assets (ROA).

Buying equipment has a much greater impact on cash flow, one that is felt immediately.

Lower lease payments mean a lower impact on valuable cash and working capital.

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