Lease vs Buy

Frequently Asked Questions - Lease vs Buy
  1. Should I lease or buy?
  2. When is leasing / buying appropriate?
  3. What are the benefits of leasing?
  4. What process should I follow to lease an item?

1. Should I lease or buy?


Leasing is the University's preferred method of acquiring technology assets (e.g. desktops, laptops, servers) and it is the lowest cost option. For a detailed listing of the University’s preferred method of acquiring various assets refer to the Lease Vs Buy - Decision Tree (xls).

If you’re in doubt about whether you should lease or buy, refer to the Lease Vs Buy - Decision Tree (xls) or your local Finance officer.

2. When is leasing/buying appropriate?


Please refer to the Leasing guidelines for the benefits of leasing along with the Lease Vs Buy - Decision Tree (xls) – this will help you decide when it is more appropriate to lease or buy. When deciding whether to buy or lease other equipment not usually leased by the University, consider the following:

  • Appropriate net cost of the asset (factoring resale value)
  • Probability of product becoming obsolete
  • Need for the product expiring before lease does

If you are considering financing a purchase via an operating lease and external funds are involved, there may be additional items to consider. Review the conditions of your external funding arrangement, and contact the Office of General Counsel if you need further assistance.
If in doubt over which option is best, please contact your finance officer.

3. What are the benefits of leasing?


Please refer to the Leasing guidelines for the benefits of leasing. Some high-level benefits include the following:

  • Lowest cost option
  • Improved cash flow management
  • Sample reporting and documentation
  • Allowance to maintain competitive advantage
  • Flexibility

4. What process should I follow to lease an item?


The following high level steps should be followed in leasing a piece of equipment & managing the equipment during the lease term. For a detailed understanding of each step & what action should be taken please refer the Leasing (Financial Services) page to find out more about the operational process for leasing equipment:

  • Leasing terms (periods) and costs
  • Lease commencement process
  • Managing leased equipment
  • End of Lease
  • Insurance
  • Surplus Leased Equipment