Purchasing a laptop is a one-time fee, and if you take good care of the laptop, it can last for years, whereas if you rent, you will be continuously paying fees on a monthly basis, which means that at some point the laptop simply becomes more expensive. In addition to this, given the service that the laptop rental company needs to provide, the rental fees are usually already marked up.
With that said there are some potential advantages to renting. The first is not having to pay a high price upfront. While businesses can still take a loan and pay off the loan over time, the second advantage of renting is the fact that you do not need to care about maintenance of the laptop, and you do not need to worry about selling the laptop if it is no longer needed. In the case where the laptop malfunctions, the rental company will replace the laptop.
In addition to this, when there are new staff, you do not need to worry about procuring another laptop since you can simply rent the laptop instead.
Read Also: How Much Can Businesses Save If They Buy Refurbished Laptops Instead Of Brand New Ones
Cost Of Rental
The first assumption that we will make for laptops is that the useful lifespan is about 3 years. The reason for this assumption is the fact that standard warranty coverage typically covers devices for 1 year or up to 3 years. If something breaks down on the laptop, it will generally still be possible to exercise the warranty for repairs. However, it should be noted that some laptop brands are known to last for as long as 10 years.
| Laptop Type | Model | Rent (3 years) | Purchase | Difference |
| High Performance | ASUS TUF FA507 | $58.90 X 36 months = $2120.40 | $1,199.00 | $921.40 |
| High Performance | MSI Thin GF63 12VE | $55.90 X 36 months = $2012.40 | $1,199.00 | $813.40 |
| Macbook | Macbook Air 15-inch M3 | $74.90 X 36 months = $2,696.40 | $1,899.00 | $797.40 |
| Macbook | Macbook Air 13-inch M3 | $63.90 X 36 months = $2,300.40 | $1,599.00 | $701.40 |
| Office Utility | Asus VivoBook E210KA-GJ170WS | $14.90 X 36 months = $536.40 | $401,00 | $135.40 |
The prices stated in this table are just for reference, since these prices are prone to change. Based on renting for a period of 3 years, laptops which have high specs seem to be $800-950 more expensive than buying, and for Macbooks, the markup seems to be $700-$800. However, for low-end to mid-range laptops which are mainly meant for office administrative work, they tend to be far more affordable to rent.
We note that it is likely that businesses may make use loans to purchase a laptop, in which case, based on an effective interest rate of 7%p.a., a $1,500 laptop could easily incur $255 in interest if paid off within a year. While this would affect the comparison somewhat, we did not put this in the table since it is dependent on the interest rate and how quickly the loan was repaid, which could vary widely.
Restrictions For Rental
In general, it seems like being able to choose to rent specific laptop models is difficult, because it depends on which laptop models are in stock. With that said, there are some laptop rental companies which give a quote on request and may be able to procure a model that you want. While it is theoretically possible for the rental company to pick whichever laptop model you desire, the rental fees may be expensive.
In addition to this the more expensive laptops on the rental market tend to come with a minimal rental period, and some may be as long as 24 months. Hence, for companies which have more demanding computing needs, it may generally be better to purchase rather than to rent.
Renting For One-Off Uses
Some businesses may need laptops only on an ad-hoc basis. For instance, businesses which run classes may need laptops for participants. These businesses may have an inventory of laptops but may occasionally require more laptops for classes that have more attendees, or they may only have classes on an irregular basis. Such situations may make it worthwhile to rent rather than purchase.
Do note that companies renting laptops are unlikely to hold an inventory of specific laptop models, so if the classes have higher-powered computing requirements, or need specific laptop models such as the Macbook, it may not be possible to rent for these purposes.
Read Also: Best Business Laptops (From $2000) For Small And Medium Enterprises (SMEs)
Similarity In Tax Treatment
Laptops which are purchased are treated as capital assets, which means that they will be given Capital Allowance based on their amortisation schedule. In general, most businesses will choose to amortise within a year, since laptops are generally low cost compared to other machinery and equipment.
Rental costs count as business deductibles which also deduct against taxable income in the year of assessment. If a company did not make sufficient income in that year, it will result in Trade Losses.
Unutilised Capital Allowance and Unutilised Trade Losses can both be carried forward indefinitely to offset taxable income for future years.
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