Lease vs. Purchase
Leasing Equipment vs. Purchasing Equipment
Procedure for Rental or Lease of Equipment:
Leasing of equipment is generally discouraged if the equipment is required on a continuing basis.
Purchasing is generally more economical.
Lease agreements are for a definitive period, generally greater than 12 months.
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:
A detailed justification for renting or leasing rather than purchasing the equipment
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.