In this credit-tight economy, leasing can be positive to your bottom line. Here are just a few reasons:
Lease payments may be able to be deducted in their entirety.
Leases in States that charge property tax on machinery usually include the property tax in the lease payment.
Some leases may be structured to include certain maintenance items to help reduce your of pocket expenses.
Leases usually require less cash or equity to take delivery of the machine.
Leases are an effective tool if you want to have access to the machine for only 3-5 years.
Leases can be an effective tool to reduce your machine equity position in a way that generates less tax liability than simply selling your machine.
Generally speaking today leases have a very low use charge, this is equivalent to a loan interest rate as a point of comparison.