Leasing vs. Purchasing Technology


The concept explains the options available when deciding whether to purchase or lease technologies. It offers practical advice regarding the pros and cons of both options, and provides helpful advice on measuring and evaluating the costs across a technology's life cycle.

Technique Overview

Leasing vs. Purchasing Technology

Leasing vs. Purchasing Technology Definition

Leasing is a contract between the leasing company – the lessor – and the customer, the lessee. Leasing enables firms to acquire the most up-to-date technology and still have remaining capital to channel into other business areas. Companies use straight purchasing to increase fixed (equipment) assets and to reduce current (cash) assets (Lysons & Farrington, 2006).

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Business Evidence

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Business Application

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Professional Tools

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Further Reading

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Leasing vs. Purchasing Technology References (4 of up to 20) *

  • BBC News (2012) Bank Forgives Debt for School Technology Lease Rip-off, [Online], available at: http://www.bbc.co.uk/news/education-19667657.
  • Buck, C. R. (1993) General Electric: Regional Healthcare Management, in Boland, P. (Ed.), Making Managed Healthcare Work, Aspen Publishers, Maryland, US.
  • Chesbrough, H. W. (2006) Open Innovation, Harvard Business School Press, Boston, MA.
  • CIPS (2008) How to Procure Capital Equipment, Chartered Institute of Purchasing & Supply, Knowledge Works.

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