Right Questions to ask before Laptop Leaseadmin
While there is always a healthy on-going debate whether to lease a laptop or buy it, the answer ultimately lies with you. Laptop lease has its own set of benefits and so does the buying a laptop. Then what is the deciding factor that can drive you towards taking the right decision? Well for one it is the circumstances in which you are to start with. If you have enough capital and all you need is a basic laptop to meet minimal day to day needs, then probably buying is the right decision. However, if you are facing fund shortage and you require a high-end laptop to compete against the business sharks at a meeting or a conference, then the best bet is to go for a laptop lease.
Let’s face the big question…
But, the big question is whether you are ready to compromise with the downside of taking the laptops on the lease? As we said it is only you who can beat the flipside by asking the right questions. Approach only the rental agencies that are ready to meet your requirement one hundred percent.
Questions to ask the rental company before taking the laptop on lease:
1. What type of lease does the rental company offer?
There are basically two types of leases popular with the rental companies. You will have to understand in depth the kind of contract you are getting in with the renting agency.
The Capital Lease or the $1 buyout is more like a loan. Here, the laptops on lease are considered as the assets and you will also get the tax benefits with this kind of lease. The capital lease is often for a longer duration of time and is not less than 5 years; hence there is always a risk of the laptops getting obsolete.
The Operating Lease is when the renting company still retains the ownership of the laptop and the only tax benefit the company is going to get is on the monthly rental amount. However, the operating lease is more famous among the small and the medium-sized businesses due to the low monthly rental values as compared to the capital lease.
2. Is there a buyout option?
A few rental companies offer the buyout option after the lease period. There are two buyout options – Fair Market Value (FMV) and the $1 buyout option. The FMV is when the business is in for an operating lease with the rental company and the business party hopes to buy out the printer at the price quoted by the rental company. The $1 buyout is when the business owner buys out the printer for $1 after the lease period ends. The $1 buyout seems to be too good to be true, isn’t it? You are right. For the $1 buyout, the monthly lease amount is substantially higher than for the FMV.
3. How long is the lease offered by the rental company?
Usually, the lease period is for 24, 36, and 48 month period. The longer the lease period the lesser is the monthly payment amount.
4. Can the lease period be terminated in the middle?
This is the most important question that needs to be addressed. More often than not the business owners are obliged to pay the lease amount in spite of the laptop not being used. However, one can avoid this by checking with the rental company beforehand if they have any terms included in the agreement for this situation. You can check if the business can pay up the monthly installments beforehand or is there a penalty involved to come out of the lease.
Before going for a laptop lease, the business owners can seek clarification on the above questions just to have a clearer picture of what they are getting into. Contact Dubai Laptop Rental with these questions and our executives will be more than happy to help you out. Get in touch with us today at +971-50-7559892 or visit our website www.dubailaptoprental.com for more details.