Should you lease or buy that new computer?

Buy it. In leases, you often pay a much higher interest rate. Use a loan calculator (see Quick Links on the front page of Financial Think) to calculate the interest rate before you sign a lease. Leases have other hidden costs, and their tax advantage is rivaled by the section 179 deduction for purchased equipment.

Exceptions? When you have no other financing options, you need the asset for short-term use, or if your strategy is to use a lot of leverage to grow your business.

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