Leasing a computer

It sounds cost effective to rent but in the end you'll pay more and won't own the equipment.
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  • Updated:4 Mar 2005



In brief

  • Renting computer equipment is a good idea if you or your business is short of cash but you'll probably pay more in the long run.
  • Buying outright can be the most cost effective way to pay for computer equipment if you want to own it for a long time.
  • Renting or leasing computer equipment entitles some people and businesses to tax benefits.
  • Seek professional tax advice for your own individual situation.

Please note: this information was current as of March 2005 but is still a useful guide to today's market.

Forking out a lump sum of a couple of thousand dollars to upgrade your computer every few years can burn a big hole in your hip pocket. Renting or leasing technology equipment allows you to pay a lower initial cash amount and make monthly payments over a specified period of time while you use the system. It also means you can upgrade to the newest equipment whenever you want.

On the downside, a computer lease can be more expensive than paying for the goods upfront and you won't own the equipment after the term of the agreement is over.

So when is a computer lease a good idea?

We checked out some computer leasing companies to see:

  • What's involved
  • The advantages and disadvantages
  • How to work out whether it suits you or your business.

This article should only be used a guide. Consult a professional tax expert for your individual situation.


  • A Commercial Rental Agreement generally applies to leases for businesses.
  • Consumers should sign a Consumer Lease. Many companies appear to focus on business customers but it's worth asking if they also provide leases for home users.
  • The Consumer Credit Code (www.creditcode.gov.au) protects consumers with consumer leases.


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