Leasing versus buying Computers. How to dramatically reduce your IT spend.

buy or lease my computers

Leasing versus buying and the real cost of using old technology.

Slow computers have been shown to massively impact on company performance. Oxford Economics surveyed 3,000 users from companies all over the world. A massive 76% said that inferior and slow IT was holding back their performance in the workplace.

On average each member of staff was losing 48 minutes a day as a result of slow computers and outdated equipment in the workplace. That could be as a result of slow hardware or inferior software installed on the computer.

The survey showed that around 10% of the working day was lost as a result of not updating computers or software. Or not having the appropriate IT support.

Many staff lay the blame at the hands of the finance department for not having a sensible IT budget. A leasing agreement is an obvious solution since it does not require a big outlay of capital.

Business Insider reported similar issues. They report that employees in the UK’s private sector are wasting an entire working day each month as a result of IT problems. This comes at an annual cost of £35 billion to the UK economy.

So having the latest equipment brings enormous rewards but how do you make sure your next IT purchase gives you the best return on investment?

Seven things you must know before you buy another computer.

Buying new IT equipment is no different from buying a new car. The value of your investment halves before you leave the dealership. Asset management is key to any Financial Director these days. So here are some surprising facts about leasing your next IT purchase:

  1. Of all the things your company will ever buy, nothing loses value faster than your computers. In fact, it’s not just computers, it’s all IT equipment. Its value plummets the second you take it out of the box. Buying equipment outright makes no sense at all.
  2. Many companies would laugh if you suggested buying the property they operate from or buying the pool of company cars currently parked in the car park. And yet the very same companies will pour thousands of pounds into computer hardware and software that loses its value overnight.
  3. If you choose the right leasing company, you can actually pay less than buying the equipment yourself – and you get all the support and advice that comes with that contract thrown in.
  4. Then there is the option for leasing new computers versus refurbished computers. Most companies claim that the primary reason for getting new IT is reliability. Yet a study recently carried out in South Africa shows that refurbished computers can be up to five times more reliable than brand new ones.
  5. If you lease your computers instead of buying them, it will have an enormous impact on your cash flow. So keep your money where you can put it to the best use.
  6. Most companies say the number one reason for not updating their computers is the finance department simply won’t let them. No matter how strong the business case may be the FD may “want another year out of them”. The real cost of this policy is enormous. Recent studies show 10% of the average working day is lost because of old technology.
  7. Not giving staff good quality IT also has a profound effect on staff morale and staff retention. The idea of “give them the tools and they can get on with the job” seems to have been lost in recent years. So if you want your teams to perform at their very best, give them the tools they need.

Lease or Buy? The true advantages of leasing versus buying computers.

Innovent Leasing’s CEO, Duane Lent, has very strong views on the subject of leasing versus buying, whether it is computers, laptops or any form of IT.

“It makes absolutely no sense these days for companies to buy their IT when they can lease it instead. One simple low-cost monthly bill is far better than a massive hit on the bank account. Monthly payments are very low so leasing means a company can keep its money in the bank”.

Leasing also means that your staff can have the latest technology and the IT equipment they need – when they need it. Not only does that impact massively on productivity but it also impacts on staff morale as well.

Innovent provides two solutions to the problem. They will lease you either brand new computers and laptops, or completely refurbished computers and laptops. It all depends on your needs and budget.

The finance agreement is always fast and without fuss. In most cases, it will take less than a week. Most importantly, leasing contracts leave you in control.

Once the lease period is up, usually 3 years, Innovent will be very keen to collect and data cleanse the equipment – provided of course you have finished with it. That’s because Innovent Leasing will then refurbish and lease your old IT to the next customer in the line. Sometimes that customer will be in the UK and sometimes they will be overseas in countries like Africa.

buying computers versus leasing computers
So there are enormous benefits here for everyone involved in acquiring tech equipment.

The pros and cons of leasing versus buying computers always have to be considered. This is what we think are the most important factors:

  • The cost benefits will be passed on to the first lease owner which means significantly reduced monthly costs. This is in stark contrast to other lease companies that never want to see the equipment again and need to make all of their profit from the first, and only, lessee.
  • The Green agenda associated with leased equipment is becoming increasingly important these days. Absolutely no one wants to see their old IT equipment go in the skip. Innovent’s leasing solution will give your company a glowing tick for having a genuine green policy in place. Recycling is now a major factor for companies, shareholders and their customers.
  • It is far easier to ensure you always have the latest IT when it involves a small monthly fee as opposed to a large capital outlay.
  • Innovent can offer you lease terms on both brand new equipment and refurbished IT equipment of the highest standard.
  • We will also ensure that you don’t buy any piece of IT that is about to reach the end of its life and be replaced by a newer model. This will mean you get an even longer life out of your IT meaning fewer upgrades down the track.

To find out more on whether you should buy or lease your computers, give us a call on 020 7123 4570.

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InnoVent is the leading UK Asset and Lease Management Specialist for New and Refurbished IT equipment.

We have one aim: reduce our clients' total cost of IT ownership. 

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