How Leasing Can Reduce Your Costs
Optimise Your Tech Budget
Paul Gibbons, Cloud Services Sales Development Manager at Chess, reviews the benefits of leasing, including:
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The technology you use is a critical success factor in your organisation. However, it can be hard to keep pace, and not every organisation can afford the regular hardware investments necessary to thrive. Buying new equipment outright can be a huge financial burden for any business, irrespective of size. As a result, many companies make the mistake of choosing low-quality equipment that doesn't fulfil the needs of their business and their people. Leasing new IT equipment is fast, flexible and helps stretch much-needed cash reserves, but it is still not widely adopted.
There's hardly any difference between leasing IT and leasing cars
Cars, just like IT equipment, lose their value incredibly quickly. I, like many others, have not owned my car for years now, here's why.
More Bang for Your Buck
I can get a new vehicle regularly. In turn, this ensures I have fewer maintenance issues. Additionally, many cars today come with a 3–5-year manufacturer's warranty and service packs, which can be built into the leasing charge.
Leasing means I can afford a premium car. Have you ever wondered how so many people can afford to drive BMW and Mercedes? It is because luxury cars hold their value longer and have a high residual value, which helps create an overall lower monthly lease payment.
Drive Productivity and Improve Retention
Similarly, purchasing cheaper IT hardware can sometimes be as bad as having an IT-related problem. People will work slower or get so frustrated they can't do their job that they choose to leave. Since we're amid The Great Resignation, none of us want to lose our people! Leasing can help secure top-of-the-range hardware like laptops, mobiles, etc., for a low ongoing cost. Your people will be more productive, your culture will thrive, and you're more likely to improve retention.
Creating the Modern Workplace
It's Financially and Environmentally Sustainable
I get to have a predictable monthly outgoing which is easier to manage for the yearly budget. Towards the end of my lease, I can simply arrange to give the car back and arrange for my new car to arrive before my current car starts to require any extra TLC and ends up costing me more money than it is worth.
Better Return on Investment
Leasing means you don't have to wait years to recover your upfront investment. Increased income and efficiencies from your new equipment could cover your lease payments and reduce your overall running costs. Also, as it is a fixed managed cost, it's easier for a business to budget.
Meeting business growth can be expensive. If you need to buy new equipment, you will need to spend a lot of money upfront, which may not always be possible while balancing the books. Leasing offers a way to obtain the equipment while spreading the costs.
Tech is out of date before you know it. With leasing, you can hand your aged technology back for brand new equipment at the end of the term. So you'll have the latest IT hardware with minimal change to your costs – and you won't be stuck with valueless or obsolete IT equipment.
So if you lease your car, why wouldn't you lease your IT?
Leasing allows your IT Team to focus on peoples' technology needs. As a result, more productive people working on the newest technology can grow revenue and drive efficiency for your business.
How long can it take to get leasing?
In most cases, leasing terms aren't as onerous as those for other contracts. Lease agreements rarely take more than 48 hours to complete and can often be finalised on the same day.
We can help you on your journey and advise on the best approach for your organisation. Contact our expert team and book your FREE technology consultation today.
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