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Independent machine intelligence · Research before the decision
THE MACHINEBLUE BOOKResearch · Market · Ownership
MBB Explains · Film 07

Lease or Loan?

Lease or loan? The salesman’s excellent tie is not the deciding factor.

Open the machine financing resourcesMore MBB Explains films
MBB Explains · 57 secondsOriginal MBB animation · English captions

About this film

Lease or loan? The salesman’s excellent tie is not the deciding factor.

Bronto looks at ownership, payments and what happens at the end. The agreement does rather matter.

Example assumptions

General equipment-contract categories only. Legal ownership, security, accounting, tax and end-of-term treatment depend on the actual contract and applicable rules. No universal off-balance-sheet or deduction claim.

Educational boundary

General educational information only, not an offer of financing, a recommendation to borrow, or individual financial, tax, legal, engineering or safety advice. All dollar amounts are USD. Bob, the finance representative and their situations are fictional. Numerical examples are hypothetical, not current offers, market benchmarks, normal rates, quotes or promises of approval or return. Eligibility, terms, fees, tax treatment, ownership rights and laws depend on the actual agreement, jurisdiction and circumstances. MBB is an independent information resource, not a law firm, and is not acting as your lender, broker, attorney, accountant, financial adviser or site engineer. Consult appropriately qualified professionals and read the actual written terms before deciding. Commercial equipment credit does not automatically receive consumer mortgage protections.

An MBB Explains short, narrated by Bronto. Fictional illustrations turn machinery questions into something a little easier to understand.

Independent machinery knowledge. Understand the numbers before deciding.

Original MBB animation with synthetic Bronto narration. Narration: synthetic Bronto voice. The film uses English captions as a separate track, so they can be turned off.

Read the complete transcript

Bob can lease the machine or buy it with a loan. Both involve payments. The important differences are in the agreement, not the salesman’s excellent tie. With a purchase loan, Bob buys the machine and repays the lender, which typically holds security over it. After repayment, the loan obligation ends. A lease pays for use under a contract. Ownership, purchase options and end payments depend on its terms. Some leases resemble financed purchases; others expect the machine back. Compare upfront cash, every payment, maintenance duties, early exit costs and the position at the end. Include any buyout, return conditions or usage limits. The label alone explains surprisingly little. Explore the questions at Machine Blue Book, then consult qualified professionals. General education, not individual advice.