lease or purchase fast food equipment?

Answer 1

If you buy, you are probably responsible for service and repairs (or you get a package for a set period), plus you will be tied into that equipment for it's lifetime (unless it can be sold when you want to upgrade).

If you lease, it should come with a service/repair/replace package and you are more likely to be able to upgrade the equipment after the initial lease period.

Also, as buying means a capital outlay, could some of the purchase price be put to better use elsewhere in the business? If so, then leasing might be a better option as you'll pay out less initially (and therefore have capital to spend elsewhere).

For tax purposes, you might find it makes more sense to lease than to buy, especially if the item will have a high residual value. Some people though prefer a one-off capital expense tax discount versus regular expenses linked to the lease. That depends on your particular tax legislation (in the UK, leasing often works out a better option)

Answer 2

Lease...it is a depreciable assets and within the end of the lease (typically 5 years or so) the book value will of the equipment will be low....not worth the initial expenditure to buy the equipment....

Answer 3

Better u can purchase instead of renting!