Advantages And Disadvantages Of Leasing

Leases commonly require little or no down payment. Leases are frequently supported by the machinery producer, which could decrease the interest rate or the residual payment. Leasing could give you the ability to receive more purchasing power from a given amount of available cash. At times machinery gets outdated in a comparatively short period of time. A closed-ended lease may enable you to use the machinery during its useful life and give it back to the leasing entity at the end of the lease term. This arrangement could result in lower total expenses than an outright purchase would have required. The main disadvantage of leases is that more interest is paid than in any other form of acquisition.
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