Computer Financing Versus Leasing Computers

Posted by Credit Financing Guru

The difference between Computer Financing and Leasing Computer, is in a nutshell, with one you own the computer and the other one you don’t.

Computer Financing

This option is the one where you own the computer. Companies can help customize a financing plan where you can pay an affordable amount. At a predetermined point the computer is shipped directly from the factory to you. You own the computer upon receipt, not the company, AND in some cases no one has owned or touched the computer prior to you.

Leasing Computers

Computer leasing is where you are shipped the computer after applying for credit. You must have good credit and be able to prove that you have the ability to make monthly payments until the computer is paid in full. During the time that you are making the payments, you DO NOT own the computer. The leasing company owns the computer.

Computer Credit Benefits

The benefits of computer financing is that not only do you own the computer, but that the computer you receive is one of the best computers on the market at the time the computer is shipped. Meaning, if the company goes to order the computer and the quoted hard drive is obsolete then you get the newer (most likely bigger) hard drive with no extra fees or hidden costs.

Companies usually offer several different flexible payment plans, but should there be a disruption in your income, you can usually contact the company and they can make arrangements to help you through the rough times. Most companies are there to make this a win-win situation for everyone. After all, if you’re not happy you won’t recommend them.

Credit repair

This is a big thing to a lot of people. Some computer credit companies have created a credit repair program that works hand-in-hand with their financing plans. They all work slightly differently. A couple scenarios are:

(1) the company will report you payments (on time or not) to the credit bureaus or

(2) upon successful completion of the agreement, you will receive a letter that states that you met the payment agreement for X amount of months which you send to all the credit bureaus.

In either case, as long as you make your payments on time your score should improve.

Be Aware

Computer Financing Companies strive to make it affordable for you so that you have more than one option. Remember to ask questions like “Is this a used computer?” “Does it come with software?” “What happens if I can’t make a payment?”

One size does not fit all. If the company does not offer several computer financing options are they really flexible enough to help you? Choose a company that may work “outside the box” and will create a financing plan that fits you.

Computer Financing Today is a computer credit company that wants to help you purchase your next computer on your terms. CFT customizes a finance program that you can afford. We have been in the financing industry for over 10 years and have partnered with an IT company in order to offer you the best products on the market that will fit your budget.

We have even created a credit repair program that will help you establish or fix your credit. We offer a flat interest rate of 5.99% for ALL our clients.. All computers are NEW (not used or refurbished). We can offer several different brands so that you not only get the hardware and software you need, but at a price you can afford. Visit our site for products, deals, and program information. We are currently running a special for this month: purchase a computer with us and receive a FREE color printer.

Computer Leasing FAQ:

Question: Are lease payments for computer equipment tax deductible?

Answer: If it is an operating lease, then the full amount of each payment is deductible. If it is a capital lease, then only the amount related to interest would be deductible and the equipment would be depreciated.

Question: Can I walk away from the lease on my computer?
I’m a student and I’m currently leasing a computer from Dell. Its a 4 year thing where I pay like $30 a month. If I don’t need the computer any more, do I still have to pay the 30$ a month? Or can you pay a lump sum or whatever?

Answer: You could walk away, but your credit history will be screwed. You need to pay for it; that’s the deal you made. A nice machine for a low monthly payment. Consider it a learning experience – if you learn from it, it will save you much money down the road.

If you truly don’t need it any more, I suggest trying to see if you can get someone else to take over the payments; they’ll get a machine, you might lose some money invested, but you won’t be on the hook for a lot more. Perhaps you can call Dell to see if you can pay out the rest of what you owe in one lump sum.

Question: Alternatives to leasing computers?
The value of computer equipment deprecates rapidly. A solution to this is leasing the computers. Are there any other options apart from buying the computers?

Answer: What about renting a computer? Some may consider it leasing but it can be different.

Question: What is a lease? Why would you choose to lease instead of buy a capital item? What steps would you follow to decide whether to lease or buy a computer system?

Answer: Leasing is to reduce out of pocket costs, especially for those permitted to write off the costs of the lease.

Question: A leased computer broke down and needed to be replaced at no cost to the business. The man who brought the replacement said that the new machine was a $2500 model. Why is this considered a transaction? I thought it was “replaced at no cost to the business”.

Answer: It is not a transaction. Either it was under warranty or a service agreement. Since the company paid nothing, there is no entry to record.

Question: Can you be charged with ‘theft’ if you do not give someone back a gift (even if money is owed on it)?
My ex-fiance gave me a laptop as my Christmas present. He recently broke up with me and is now demanding to have it back to get out of making payments on it. He is apparently leasing the computer and still owes $500 on it. To get out of the payments he quit paying on the computer and told the company that I took it and to call the police!! Someone from the company came by my house today to take the computer back. My mom talked to them and told them it was a Christmas gift and that we have photos to prove that, but the guy said it didn’t matter and that it was considered “stolen”.

Is there any way my ex or the company can charge me with anything when I had nothing to do with it? It is my ex that signed the papers and has an agreement with them.

Answer: Because it was a gift, you would have rights to it.

However, because he failed to make payments, the company has rights to it also.

Under those circumstances, it would not be considered stolen and there would be no criminal charge of theft. The matter would be handled through small claims court. My guess is the judge will rule in favor of the company, unless you agreed to pay the balance.

Question: What Information Can A Rental Company Disclose, In Regards To One’s Account?
I rented a computer from Aaron’s Sales & Lease. I owe them $250.00 on an item that is almost paid off. However, they continuously come to my house at night causing a scene in the neighborhood. The General Manager went as far as kicking my door, scaring my little brother.

Now, the company is calling my house, and has spoken to my roommate. They disclosed information such as the Date of Purchase, Amount in which the computer was, how much my payments are, and how many payments I’ve made. Is this legal? or does it fall under the Privacy Protection Act of 1970?

I understand that I owe them – and I will pay them – however, I am upset that they are disclosing my account information to people in which I would NOT like to know my spending or financial habits/history.

Answer: You clearly are avoiding them if they are at the point of kicking your door and coming to the house, and sorry but $250.00 at the rates they charge is still a fairly big amount to owe, so how about you pay them or give the computer back and the matter will be over with.

As for them telling others about your personal details that is wrong BUT had you been up to date then this again would be a moot point.

Question: How can I break a imac lease? It turns off ALL the time!?
My Imac leased through Rentsmart has been back to the shop and had its guts – at least three things replaced. But the crumby thing turns itself off all the time in applications, in games, using the computer drive. The only thing that works is the internet. So I am paying megabucks for three years for a big net book.

Answer: Unfortunately for you, I know that they have actually taken some of their customers to Court for breaching their contracts. Not every company does because of the legal fees entailed – but Rentsmart is not one of the one’s who will let it slide.

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