QHRRP 9000-105

Lease vs Buy

 

Review/update responsibility
 Finance

 
Revision
 14 Oct 2024
Lease vs buy
 Tangible assets acquired by the Association will normally be purchased rather than leased. Exceptions may be justified in cases where…

  • the asset is only to be used for a single project and its lease rate is substantially lower than the cost purchase or its resale as a used asset.
  • the asset is not expected to be utilized for the full term of its useful life.
  • the asset is not a piece of equipment or asset whose use would justify Association ownership.
  • the economic conditions of leasing are more favorable to the Association.
  • leasing of the provider’s equipment is a required component of a service contract otherwise approved by the BOD.

Equipment to be leased by a contractor solely for use on an Association contract (or contracts) should be evaluated for potential purchase by the Association for the contractor if the lease cost vs. purchase-and-resale value or the potential for sustained use by the Association justify the purchase.

Leasing decisions for assets costing more than $5,000 and/or lasting longer than one (1) year require the approval of the Treasurer of the Association.