Leasing PCs Enables Enhanced Capabilities Without Buying the Ranch | AccountingWEB

Leasing PCs Enables Enhanced Capabilities Without Buying the Ranch

We lease cars, so why not PCs? The computer is said to depreciate faster than a car and become obsolete as soon as it is hooked up and ready to run. Business owners and others who replace their computers every two years or so may want to consider the leasing option.

Some of the world's largest computer manufacturers are banking on this idea and pushing this arrangement. Dell and Compaq, for example, are pushing the lease and also informing customers that outdated units may have value beyond charity value by looking at how parts can be recycled and used in other units. The case, in this instance, can be used again on another machine.

Leasing also is a viable small business option who cannot afford to purchase as many PCs as the company may need. With a 20 percent residual value built in, a two-year lease for a $2,000 computer at 8 percent interest would cost $72/month, and only $45/month for a four-year lease.

Dell admits that leasing isn't for everyone, but concedes that businesses seem pretty keen on the idea since a leasing arrangement is in line with the way other goods are purchased by the small business sector.

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