Most businesses can either buy an air conditioning system outright or lease it and pay monthly. Neither is right for everyone. Here is how they compare.
Buying outright
- You pay the full installed cost upfront.
- You own the system from day one.
- Servicing and repairs are paid separately, as and when they are needed.
- It suits businesses with spare cash who want the lowest total cost over the life of the system.
Leasing on a monthly plan
- There is no upfront cost, so cash stays in the business.
- One fixed monthly payment makes the cost predictable.
- On a SteadyTemp plan, installation, an annual service and parts and labour cover are included.
- It suits businesses that want air conditioning now without a large capital outlay, and want the system looked after.
Tax
Lease payments and purchases are treated differently for tax. Lease rentals are often treated as a business expense, while purchased equipment may qualify for capital allowances. The right answer depends on your business, so speak to your accountant before you decide.
Questions to ask any provider
- Is there anything to pay upfront or on installation day?
- Is servicing included, and how often?
- Are repairs and parts covered for the whole term?
- What happens at the end of the term?
- Is the monthly price fixed?
We quote a monthly plan and an outright price on every job, so you can compare them properly.