Question

Which assets should always be leased? Or is there such a thing, where it is a company by company ecision?

Answer 1

There is no such provision, according to which it can be said that these type of assets should always be leased. It is a company by company decision according to which a company decides, whether to lease a asset or not. Sometimes the company decides to buy a asset for its own.

If your business needs new equipment or technology, but you can't afford it, leasing may be an option to consider. Leasing lets you make smaller monthly payments, typically over a multiyear period instead of buying it all at once. At the end of the lease, you may return the equipment OR buy it for a price that factors in appreciation and how much you paid over the life of the lease.

So, it is a complete financing decision need to be maintained by the company, if it wants to make a buying v/s leasing decision. However, the major types of assets are considered for this type of decision. The smaller assets usually does not become the part of the this decision making.