When it comes to equipment leasing, one of the first decisions you’ll face is whether to lease new or used equipment. Each option offers distinct benefits—and potential drawbacks—depending on your budget, industry, and goals.
Let’s break down the pros and cons of leasing new vs. used equipment so you can make the smartest choice for your business.
Should you lease new or used equipment?
Lease new equipment for reliability and tech advantages. Lease used equipment for cost savings. Choose based on budget, risk, and industry needs.
Latest Technology – Boost productivity with modern features
Lower Maintenance Risk – Less chance of breakdowns
Warranty Coverage – Manufacturer or lessor-backed protection
Better Financing Terms – Lenders may offer lower rates
Higher Monthly Payments – Premium price for premium tools
Higher Insurance Costs – Newer equipment often requires more coverage
Depreciation Risk – You’re paying for value that drops quickly
Lower Monthly Payments – Ideal for startups or tight budgets
Faster ROI – Lower cost = quicker return on investment
More Negotiation Power – Flexible terms from sellers or lessors
Access to Familiar Models – Avoid retraining teams on new tech
Higher Maintenance Risk – May need more repairs or downtime
Shorter Useful Life – Could need replacing sooner
Limited Warranty Coverage – Often sold “as-is”
Outdated Features – May not meet latest safety or compliance standards
| Factor | New Equipment Lease | Used Equipment Lease |
|---|---|---|
| Monthly Cost | ❌ Higher | ✅ Lower |
| Reliability | ✅ More reliable | ❌ Risk of repairs |
| Warranty | ✅ Usually included | ❌ Often limited or unavailable |
| Technology | ✅ Latest features | ❌ May be outdated |
| Financing Terms | ✅ Easier approval, lower rates | ❌ Stricter approval in some cases |
| Long-Term Value | ✅ Longer useful life | ❌ May need earlier replacement |
You rely on high-performance machinery or precision tools
Downtime or repairs would be very costly
You need the latest tech to stay competitive
Your business has strong cash flow or funding
You plan to use the equipment long-term or pursue ownership
You’re a startup or have a limited budget
You only need the equipment short-term
You’re familiar with older models and don’t need new tech
You want to test a piece of equipment before committing long-term
The equipment has a slow depreciation curve
✅ Inspect Before You Sign – Ask for service records and inspect in person (or hire a technician)
✅ Check Age & Usage – Ask about hours of operation, mileage, or prior applications
✅ Request a Trial Period – Some lessors offer short-term leases or “try before you buy”
✅ Ensure Replacement Parts Availability – Verify ongoing support for parts and service
✅ Negotiate the Buyout – Used equipment may qualify for lower buyout terms
✅ Bundle Maintenance – Consider adding a service contract to cover repairs
Leasing new equipment offers top performance and peace of mind—but at a premium. Leasing used equipment stretches your budget but requires due diligence.
There’s no one-size-fits-all answer. The best choice depends on your industry, risk tolerance, budget, and how long you plan to use the equipment.
Ready to lease new or used equipment?
Compare lease offers, ask the right questions, and choose the option that aligns with your operational needs and financial strategy.
New or used, leasing gives your business room to grow.