Laptop rent to own or laptop lease is a boon for the laptop users who wish to upgrade with continuously improving hardware. So is laptop leasing worth the money? Lets see...
Leasing laptop is a process whereby you use the laptop, rent to own it for a pre-determined time period at a price as fixed between you and the leasing company.
With the competition between electronics leasing companies growing fierce you can lease a laptop for your
use at a pretty decent price.
Though during the leasing period you rent to own the laptop however most leasing companies arrange for transfer of ownership according to certain pre-determined conditions after the leasing period is over.
Before you rent to own a laptop you must understand the nuances of the leasing process including the pros and cons associated with it.
Laptop rent to own: pros
Laptop rent to own means monthly payments which is easy on the budget of an individual and businesses.
It ensures predtictible cash flow and fixed budgeting. Prevents blocking of capital resources.
Laptop hardware and software get upgraded at a phenomenal rate. Certain businesses and individuals need to
upgrade continuously with latest trend. This can be possible through laptop rent to own programs where you
pay monthly small amounts and can upgrade to an advanced version with a little or no change in the agreement.
However direct purchasing in this situation will cost you a fortune for sure.
Leasing companies that provide laptop rent to own facilities agree to give hassle free repair and replacement
services. They provide free technical support through out the lease period. some companies allow upgradation of
laptops for a pretty throwaway price during the lease period.
A lease agreement can be used to determine the best laptop model for your use as you get the
oppurtunity to try different models without the commitment of purchase.
Your rent to own laptop is a rented property whose actual owner is the leasing company. So since you pay the
money as rent to another party that amount is tax deductible i.e it's 100% allowable against profits before tax.
Lessing is entirely different from any bank lending or other credit arrangements. It does not need any
additional security.
When you rent to own a laptop, you have a nice disposal strategy for used laptops in place. The leasing company picks
it up in bulk. You could opt for one of various post lease offers of disposing the laptops or buying at FMV or $1 options.
Laptop rent to own: cons
The monthly rent accumulated over the lease life time is greater than the purchase value of the laptop. Thus
you end up paying more.
In some leasing plans the lockin period before trading or upgrading is allowed may be long. This would be of
great disadvantage in case there is requirement of changing to the latest technology in the market as soon as possible.
Inability to return laptops no longer used results in you stuck up paying for a laptop not in use.
If you travel frequently then the services might not be timely available. It's quite possible that your brand
has not got a service centre in your destination.
Ownership lies in the hands of the leasing company subject to change of ownership depending on the pre determined
conditions.
Small businesses that have been operating for small period of time may not be able to furnish trading and credit
history to the leasing companies. Thus such small businesses find it difficult to avail the benefits of a laptop
rent to own facility.
Leasing companies set an average minimum price that would qualify for availing the lease facility. Moreover late payment
of fees could carry the burden of fine etc.
