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Lease vs Buy

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List the advantages of an organization choosing to lease an asset instead of buying it?

Why are these advantages important?

Describe the effect interest rates have on the decision to lease vs. buy?

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The expert lists the advantages of an organization choosing to lease an asset instead of buying it.

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List the advantages of an organization choosing to lease an asset instead of buying it?

The main advantage of leasing versus buying an asset is the lower out of pocket costs in terms of owning and maintaining the asset. An organization does not have to make hefty down payments. Further, the monthly lease payments are lower than that of monthly payments in the case of purchasing a car. Leasing is especially beneficial if the organization plans to use the ...

Solution provided by:
Sheetal Jain, PGDM
Education
  • BComm, University of Delhi
  • Post Graduate Diploma in Management (Equivalent to MBA), All India Management Association
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