Lease vs Buy
|Frequently Asked Questions - Lease vs Buy|
Leasing is the University's preferred method of acquiring technology assets (e.g. desktops, laptops, servers, printers, plotters, scanners, photocopiers) and it is the lowest cost option.
If you’re in doubt about whether you should lease or buy, refer to the Leasing guidelines or your local Finance officer.
Please refer to the Leasing guidelines for the benefits of leasing – 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.
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
The Leasing guidelines provides an outline of the leasing process, but at a high level the steps are:
- Obtain a quote from the equipment supplier.
- Contact Alleasing Pty Ltd with the supplier’s quote in order to obtain a lease plan.
- Raise a Purchase Order requisition including the following:
1. Category (EQUIP_LSE) is selected, as this triggers the leasing process within the University’s financial system.
2. The equipment supplier is under “Supplier Details” and their quote under “Amount”.
3. Billing/invoicing to be addressed to Alleasing Pty Ltd and NOT University of Sydney as for all other Purchase Orders.
4. General Ledger classification code 5252 is used.