Equipment leasing vs buying: which is better?

Leasing preserves cash and lets you upgrade to newer equipment at lease end — ideal for technology that depreciates fast. Buying (with financing) builds equity and is typically cheaper long-term for equipment with long useful lives. The break-even depends on the lease rate, equipment lifespan, and your tax situation. Section 179 deduction can make buying more attractive by allowing immediate expensing of the full purchase.