22. To Buy or To Lease? Lease Buy Cash Flow Usually better from a short-term cash flow perspective. Frees up cash for other purposes while you generate income to pay the leases. You pay less overall but need to have available cash. Financing as an alternative costs more than a lease. Upgrades Many lease companies let you upgrade to newer equipment during the term of the lease without renegotiating. If you need newer equipment, you are on your own. However, simple upgrades (RAM, hard drive, etc.) cost you the price of the upgrade only. Equity At the end of a lease, you don't own the property, and you will need to replace it or buy it from the lease company. You own the equipment and can do with it whatever the needs of your school dictate. Disposal The lessor is responsible for whatever it costs to dispose of the equipment. You are on to your next set of computers. You can use the equipment for a different purpose within your school, sell it, or pay someone to recycle it for you, but disposal is up to the owner of the equipment.