Lease vs. Purchase
Leasing Equipment vs. Purchasing Equipment
Procedure for Rental or Lease of Equipment:
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Leasing of equipment is generally discouraged if the equipment is required on a continuing basis.
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Purchasing is generally more economical.
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Lease agreements are for a definitive period, generally greater than 12 months.
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Rental agreements are normally for an indefinite period, generally less than 12 months, and can be terminated after giving a advance notice, as per the agreement.
The department prepares and submits to Purchasing Services a purchase requisition in banner.
The purchase requisition must be accompanied by a memorandum which includes:
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A detailed justification for renting or leasing rather than purchasing the equipment
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Any other information available to the Department which would support the request
All requests to lease or rent equipment with a total cost exceeding $350,000 require approval of the State Division of Purchase and Contract.
All lease agreements are approved by the Vice Chancellor of Finance and Administration because the department is making a commitment against future funds.
