Technology is the backbone of nearly every organization today—whether you’re a small local business, a school district, a healthcare facility, or a multi-state enterprise. The challenge is that IT hardware depreciates rapidly, refresh cycles are shorter than ever, and the cost of staying current can strain budgets.
Laptops, desktops, servers, networking equipment, collaboration devices, and specialized office hardware represent ongoing investments—not one-time costs. That’s why many organizations struggle with the same question:
“Is it better to lease or purchase IT hardware?”
The answer depends on your organization’s financial goals, refresh cycle, operational needs, and long-term technology strategy. At Aztec, we help clients across the Northeast and nationwide design the IT acquisition model that works best for their environment.
In this in-depth guide, we’ll compare the three most common procurement paths:
Traditional purchasing (capital expense)
Fair Market Value (FMV) leasing
$1 Buyout leasing
We’ll break down how each model works, their advantages and drawbacks, and why many organizations today choose flexible financing options—especially as tech evolves faster than ever.
Purchasing is the most straightforward model: you pay upfront and own the hardware immediately. Many organizations are familiar with this approach because it feels simple and avoids ongoing payments.
But ownership comes with both benefits and limitations.
1. You Own the Asset
Once you purchase the hardware, it belongs to your organization. There are no return obligations, fair market value considerations, or end-of-term fees.
2. No Long-Term Contracts
With a one-time purchase, there’s no financing agreement or multi-year schedule. This appeals to businesses that prefer straightforward CapEx spending
3. Flexibility in Deployment
Ownership gives you the freedom to repurpose, resell, or reassign hardware without any restrictions from a leasing provider.
1. Large Upfront Cost
Hardware—especially business-grade devices—adds up fast. Outright purchases can strain budgets and force organizations to delay upgrades.
2. Rapid Depreciation
Most IT hardware depreciates faster than almost any other office asset. After three to four years, devices lose most of their resale value.
3. Technology Becomes Outdated Faster
When budgets lock you into longer refresh cycles, staff may be forced to work on older, slower, less secure devices.
4. Inconsistent Budgeting
Big CapEx spikes every few years make planning difficult—especially for educational institutions, nonprofits, and SMBs.
Option 2 — Fair Market Value (FMV) Leasing
Fair Market Value leasing is the most common form of IT hardware leasing today. With FMV, organizations lease equipment at a lower monthly cost and return it at the end of the term (typically 36–60 months).
This is the preferred option for businesses that want predictable budgets, flexible refresh cycles, and access to newer technology.
Advantages of FMV Leasing
1. Lowest Monthly Cost
FMV leases typically offer the lowest payment option because the organization doesn’t own the hardware at the end. This allows for maximum budget efficiency.
2. Ideal for Regular Technology Refreshes
Most companies refresh laptops, desktops, and collaboration devices on a three-year cycle. FMV leasing aligns perfectly with that behavior.
3. Avoids Aging, Outdated Equipment
When the term ends, you replace the equipment with the latest models—keeping your environment modern and secure.
4. Lower Total Cost of Ownership Over Time
By avoiding ownership of depreciated assets and minimizing downtime from older devices, organizations save operationally.
Disadvantages of FMV Leasing
1. You Don’t Own the Equipment
If your strategy requires long-term ownership or specialized hardware you want to keep for years, FMV may not be ideal.
2. Return Conditions Apply
Equipment must be returned in “normal working condition,” which is standard but still requires planning.
3. Not Ideal for Unpredictable Lifespans
If you use hardware long past its expected life, FMV leasing may not be the cheapest option.
Option 3 — $1 Buyout Leasing
This leasing structure allows organizations to pay off hardware over time—then own it for $1 at the end. It’s similar to financing a car.
Advantages of $1 Buyout Leasing
1. You Keep the Equipment
Perfect for organizations that want the benefits of financing but still plan to own hardware longer-term.
2. Payments Are Predictable
Budgets are easier to plan because payments are fixed across the entire term.
3. Good for Hardware With Long Useful Lifespans
Servers, networking equipment, and large format printers often fall into this category.
4. Ideal for Stable Environments
If your organization does not require frequent refresh cycles, a $1 buyout may be the best value.
Disadvantages of $1 Buyout Leasing
1. Higher Monthly Payments Than FMV
Because you keep the asset, payments are typically higher.
2. You Still Inherit Depreciation Costs
This can impact long-term savings compared to FMV leasing.
3. Risks of Owning Aging Hardware
Older equipment costs more to support and is more prone to security vulnerabilities.
Why Aztec Recommends Leasing for Most IT Hardware
Technology today changes too quickly to rely on long refresh cycles or large capital purchases. Most organizations benefit from turning technology acquisition into an operational expense instead of a capital expense.
At Aztec, we often recommend leasing—especially FMV leasing—for several reasons:
1. Flexible Refresh Cycles
Leasing keeps your organization on a predictable 36–48-month refresh schedule, ensuring employees always have secure, modern, efficient devices.
2. Stable and Predictable Budgets
3. Minimized Security Risks
As devices age, firmware support ends, critical patches slow, and cyber vulnerabilities increase. Leasing ensures your endpoints stay secure.
4. Better Employee Experience
Modern hardware improves productivity, software compatibility, and user satisfaction.
5. Ideal for Rapidly Changing Technology
Whether it's PC hardware, servers, networking gear, or collaboration devices—leasing keeps organizations future-ready.
Aztec’s Flexible IT Hardware Leasing Program
Aztec partners with trusted financial institutions to create custom leasing programs tailored to your organization’s needs.
Our leasing options include:
FMV leases for standard office IT hardware
$1 Buyout leases for long-life infrastructure
Short-term leases for temporary or seasonal usage
Bundled leases that include hardware + service + security
What makes Aztec’s leasing program unique?
1. Technology Expertise
Our specialists help assess which equipment aligns with your workflow, industry, and long-term goals.
2. Full Lifecycle Management
From procurement to installation, upgrade, and return—we handle the entire process.
3. Hardware From Leading Brands
We deploy top business-grade hardware, including Dynabook, HP, Sharp, Canon, Brother, and more.
4. Migration and Rollout Planning
If you're upgrading from Windows 10 or transitioning to new hardware, Aztec builds a complete rollout strategy.
5. Scalable for Any Size
Whether outfitting 5 devices or 500, we structure leases that adapt as your needs evolve.
How to Decide Which Option Is Right for Your Organization
Choosing the right IT acquisition model requires understanding your organization’s goals, refresh cycles, and cash flow preferences.
Purchase If:
You want to own equipment long-term
You have budget surplus and prefer capital spending
You use hardware well beyond typical refresh cycles
Choose FMV Leasing If:
You refresh devices on a 3–4 year cycle
You want predictable OpEx budgeting
You want to stay ahead of depreciation
You prioritize modern hardware and employee experience
Choose a $1 Buyout Lease If:
You want to spread payments out
You still want to own the hardware
You use equipment longer (servers, LFP, networking gear)
Still unsure? Aztec offers complimentary assessments to help you select the right model.
The way your organization acquires IT hardware impacts your productivity, security, long-term budget, and ability to stay competitive. While purchasing offers simplicity, leasing—especially FMV leasing—provides the flexibility and stability most modern businesses need.
At Aztec, we tailor every hardware and leasing solution to your unique environment, ensuring you get the right equipment, the right financing model, and the right long-term strategy.
Ready to explore the best option for your business?
Connect with Aztec today to discuss your IT hardware, financing options, rollout plans, and full-service support.
Your next hardware refresh starts here