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How do I decide how long my lease term should be?

Attempt to match your lease term to the useful or optimum life of the equipment you are leasing. For example, if you only require the use of the asset for a short period of time but its useful life is 5 years it may be beneficial just to rent the item for the interim period. If you require the use of an asset that has an expected useful life of 4 years before it will require major maintenance or replacement parts it may be useful to lease it for the 4-year optimum life cycle.


Last Updated:  November 17, 2020