To lease or not to lease – how to get the best equipment for your school 

As SBLs procure equipment for their schools, what must they consider when deciding whether to buy or lease?

Good equipment can improve learning, so it is important that SBLs procure high quality products for their schools and students – but as costs continue to rise, and school funding continues to dwindle, the focus has to shift to getting the best value for your money, rather than procuring the highest quality products.

One way that SBLs are making the most of their budgets is by leasing equipment instead of buying it. By leasing, SBLs are benefitting from first-rate equipment that is regularly updated, which means schools are receiving the most up-to-date software and devices.  Leasing also brings the benefits of lower up front expense, as schools make smaller regular payments, have the flexibility to choose from a range of products, and a choice of packages where the inclusion of maintenance costs (or not) is also in the mix. 

So, what do SBLs need to consider when they are choosing whether to lease or not?

What does your school need? 

SBLs should start by clearly identifying the needs of their school and the features required to meet these. This will enable the quickly identification of which equipment will be best suited to their school and will kick start the procurement process. SBLs must be aware of how often the school is intending to use the equipment as this can incur additional costs; for example, if it has been leased, photocopiers can charge an extra fee per paper copy, or for the replacement of toners and staples. 

Comparing between leasing and buying 

For some schools leasing will not be the right option and buying the equipment outright will be better in the long run so it is vital to carefully compare the price of leasing to the price of buying to make sure leasing is the right choice for your school.

What to consider when buying equipment outright: 

• any discounted prices;
• prices excluding VAT;
• the cost of maintenance.

What to consider when leasing:

• the total cost of the equipment by adding up the regular payments and money paid upfront;
• any discount received by against the manufacturer recommended retail price (MRRP);
• any software requirement or updates; 
• any documentation fees;
• service costs – which are usually fixed;
• the cost of settling an existing lease. 

Existing leases will need to be dealt with; you cannot add a settlement cost to a new lease as it can involve interest on that sum over the new lease period. This then becomes a finance lease, and could represent borrowings which are not allowed under DfE rules without permission. 

The decision to lease rather than buy could bring a lot of benefits to your school. Investing in equipment through leasing means schools and students can receive the most up-to-date software and devices to support learning and, as cost keep rising, predictable and pre-set payments will help keep school budgets stable.