---   SHOULD YOU RENT OR BUY   ---


Rent or Buy? The Pontentially Expensive Question
 -- Jim Gelder, Projectorian.com


When considering audio-visual equipment and projectors, the decision on whether to rent or buy isn't always an easy one.


Besides financial considerations, you must also take into account factors like obsolescence, maintenance, and flexibility.


There are a number of arguments for buying, and in some circumstances, renting may be the better decision. Most obviously, if you use projectors only very occasionally, renting will almost always be the better option.


Making a purchase of a quality projector is a major expense, and if you use it only once or twice a year, it just doesn't make sense.


This is particularly true because of the obsolescence factor. Technology changes very quickly. You may well find that the next time you have a presentation, that old projector you bring out of the storeroom just no longer has the features you need, doesn't interface with your other equipment, or just can't be used to show more modern types of presentations.


Renting will give you the opportunity to get a lot more projector for your money, and let you take advantage of all of the latest features available. In most cases, if you rent, you will be able to use a projector with a lot more power than you would be able to afford to buy outright.


Renting projector equipment also relieves you from the burden of maintenance. There will be no need for an audio visual staff, since the rental agency will take care of all repairs and maintenance that may be required. Also, your storage and warehousing needs will be kept to a minimum, since if you use rentals, there will be no need to dedicate a room to storing audiovisual equipment. Also, downtime is kept to a minimum. If a rental projector breaks down, your rental agency is very likely to offer overnight, if not immediate replacement.


There are situations where buying is the right option. Like most types of technology, the cost of new projectors is trending downward. If you have a good feel for how many days a year you will actually use a projector, it's easy to calculate a break-even point.


While the rental is deductible as a business expense, if you buy, you can depreciate the equipment and deduct the interest as well, so tax-wise, both buying and renting has a plus side. Assume however, that you don't want to keep a projector for more than two years if you buy.


Estimate how many days you will use it over two years, calculate the rental cost to do so, and compare that with the cost of buying. In many cases, even if you don't use it on a regular basis, you may still find purchasing to be financially advantageous. When making the calculation, also take into account whether it will be necessary to use multiple projectors simultaneously.


For example, do you have workshops once a year where multiple presenters may need projectors? This makes the calculation a little more difficult, but in such a case, the bottom line often weights out in favor of renting, or alternately, owning one for regular use and then renting extras for those special occasions when you need more than one.





Before you rent, you may want to check out this checklist that goes over the information you should have available with you when you contact a potential rental company. Also remember that renting a projector locally will differ from renting via national companies - be sure to check the terms and conditions from companies like projectorrentals.com.