Here is a great article from Cisco regarding leasing vs. buying of equipment:
- http://www.cisco.com/web/about/ac123/iqmagazine/archives/q4_2004/departments/net_strategies/financing.html
Unfortunately, the above page is no longer available.
Here's a quick comparision:
Leasing = a non-cancelable contract over a fixed term
- 100% Financing
- Conserves Working Capital
- May lessen tax liability
- Hedges against inflation
- Matches the cost with the benefit of use over time
Buying = cash purchase
- No finance charges
- Direct ownership
- Allows you to take depreciation on your tax return