⚖️ Leasing vs Buying Equipment – Comparison Table

Criteria	Leasing	Buying
Upfront Cost	Low or zero down payment	High — requires full purchase cost or loan down payment
Ownership	Lessor owns the asset	Business owns the asset
Monthly Payments	Fixed lease rentals	EMI (if financed) or none (if paid outright)
Tax Benefits	Lease payments are typically deductible	Depreciation and interest (if financed) deductible
Asset Obsolescence	Low risk — easy to upgrade at end of lease	High risk — stuck with outdated equipment
Balance Sheet Impact	Often off-balance-sheet (for operating leases)	Capital asset appears on balance sheet
End of Term Options	Return, renew, or buy	No restrictions
Best For	Short to medium-term use or fast-changing tech	Long-term use or essential core assets

🏦 When Leasing Makes More Sense:

• You want to conserve working capital
• Equipment may become obsolete quickly(e.g., IT, medical tech)
• You want flexibilityat the end of term
• You prefer predictable monthly expenses

🏢 When Buying Is Better:

• Equipment is criticalto your operations and used long-term
• You want to build asset value
• You can avail depreciation and are okay with initial investment
• You prefer not to have recurring payments

🔍 Popular Equipment Categories for Leasing in India:

• Construction machinery (excavators, cranes)
• Medical equipment (diagnostic machines, surgical tools)
• IT equipment (laptops, servers)
• Manufacturing tools and CNC machines
• Commercial vehicles and fleets