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Security Advice: CCTV Cameras; Should You Lease or Buy?

It’s quite surprising how adverse many NZ businesses are to leasing their CCTV cameras.

Very often businesses would rather go without having the benefit of a CCTV system, stating they can’t afford it but at the same time not considering the advantages of a monthly lease option.

On their website Flexigroup (flexirent.flexigroup.co.nz) give the following advantages to consider when looking at a lease option.

Operating Lease ( CCTV Cameras )

CCTV Cameras security advice
  • For technology that has up to three years useful life.
  • The flexibility to update to new equipment during the rental term.
  • Tax deductible for business use.
  • Off balance sheet monthly expense.

Lease-To-Own ( Alarm system and card access and intercom systems)

  • For equipment the customer will use for more than three years with end of term ownership.
  • Spread payments across a longer term for lower monthly outgoings.
  • Capital/savings are conserved for more worthwhile purposes.

So when looking at CCTV cameras it’s very similar to computers or smartphones in that the next generation of technology is often only months way, so Flexigroup advise “why buy what depreciates?”

As an example a $10,000 plus GST CCTV system would give you a monthly figure of $356 plus GST to repay. In effect you pay $78 per month additional to the CCTV purchase price in interest but then again you have only laid out $356 plus GST and you have a$10,000 cameras system working for you. The question to ask is how and where could you invest the remaining $9,644 plus GST left in your bank account to better effect, an investment like marketing that could earn your business more than $78? If you can see how that can help your business than a lease plan makes sense for you.

Also read: Protecting Your Business in New Zealand: Commercial Security Camera Solutions

If you would like to discuss this further then please give me a call, Philip on 0800 425576

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