Own Or Rent? - Page 2 of 2 - Black Enterprise

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Black Enterprise Magazine January-March 2019 Issue

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global sales operations, the equipment still has value, and “IBM sells it back into the marketplace.” Sometimes equipment is refurbished. Ward adds that it’s important to consider total cost of ownership from beginning to end, and suggests upgrading components within high-end systems, rather than replacing the whole system. If you dispose of equipment yourself, make sure your IT department copies old data, then wipes information from the old hard drives with strong overwriting programs, followed by strong magnets.

Is Tech a Good Buy?
Here’s a quick way to determine whether you should lease or buy office equipment.

LEASE
Up-Front Capital: Leasing doesn’t require much capital up front-mostly the first month’s payment.
Cutting Edge: It’s easier to keep up with current technology.
Hidden Costs: Non-cancelable agreements and interest rates spread out over the length of the lease.
Ownership: You’re not responsible for disposing of old equipment, and can begin a new lease with newer equipment sooner.
Tax Time: Lease payments might be deductible as business expenses.

PURCHASE
Up-Front Capital: May not require much up front, depending on whether you make payments or buy outright.
Cutting Edge: A good choice if you’re not interested in the “latest and the greatest.”
Hidden Costs: Purchases have taxes, warranties and, if purchased on credit, interest.
Ownership: You can use your equipment as long as you can squeeze life out of it.
Tax Time: Sometimes purchasing is more beneficial for your particular tax situation. Talk to your accountant.

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