Information of Lease ＞ Effective utilization of Lease ＞ Advantages of Lease

Advantages of Lease


《Reasons for Purchase (Disadvantages of Lease)》

According to "Survey of the Trends in Demands for Leasing" executed by Japan Leasing Association, there are reasons below companies choose leasing (advantages of lease), or purchases (disadvantages of lease).
Summary of the Report regarding Survey of the Trends in Demands for Leasing（PDF）
※The figures show ratio of companies which chose each item.

《Reasons for Leasing (Advantages of Lease)》

  1. Companies only have to manage lease payment and can plan laborsaving of office work management and cost reduction. (72.4%)
  2. Fixed rent makes cost estimating easy because it can be treated as expenses. Companies can design business plan such as capital investment easily. (61.8%)
  3. Companies can afford to invest a large amount of money on equipments and can put money for management to effective use because rent is fixed and a lot of initial investment is not necessary for the introduction of equipments. (61.5%)
  4. Companies can adjust lease term to the period for which equipments are planned to be used and can flexibly update equipments. (53.7%)
  5. Companies can properly conform themselves to environment-related laws such as Waste Management Law by returning lease property at lease end. (40.9%)
  6. Companies think that possession by leasing is more popular than purchase. (26.4%)
  7. Capital outsourcing effect, including a greater profit without assets, is available. (24.3%)
  8. Companies never miss the opportunities to invest on equipments because contract procedures are comparatively swifter than borrowing. (16.0%)

《Reasons for Purchase (Disadvantages of Lease)》

  1. The property is now planned to be used for a long period without renewal. (52.8%)
  2. Companies can afford to purchase equipments. (37.2%)
  3. Purchase is preferable for significant equipments. (35.8%)
  4. Borrowing is comparatively more reasonable in price than leasing. (30.6%)
  5. Companies can use specially recognized depreciation methods for tax purposes. (29.5%)
  6. Early cancellation is not permitted during leasing term. (18.8%)