A capital expense (CAPEX) traditional lease or $1 buyout lease 

A traditional lease, also referred to as a dollar buyout lease is a common option that every finance company can offer. When an organization knows in advance of procuring a technology solution that they intend to own the solution at the end of the term, a $1 buyout lease is commonly recommended. A $1 buyout is an ownership program and it is therefore considered a capital expense (CAPEX) lease for accounting purposes.

Additional accounting implications include the requirement to record an asset and its corresponding liability on the balance sheet. The asset will then be depreciated. This program is best suited for customers who know up front that they want to own the equipment and expect it to meet their needs for a considerable length of time. If you need to be at the forefront of technology and if technology advancements can bottleneck your growth potential you may be better suited for our exclusive monthly payment option called Shield or technology equipment as a service.

Pros and Cons to a $1 Buyout Lease:


  • Low upfront costs
  • Manageable monthly payment
  • A good alternative to a cash purchase if the intent is to own the equipment
  • Easily bundle in support services with the monthly payment


  • The accounting of assets and liabilities may create unwanted balance sheet implications or financial ratio issues
  • Capital will have been used on depreciating assets rather than appreciating assets or income generating projects
  • Due to technology's rapid advancements, you may find yourself stuck owning outdated equipment that holds back your growth and competitiveness. 

Know All of Your Payment Options

Technology will certainly continue to change at a rapid pace. As much as possible, it is important for a business to understand their own needs in the short and long term when considering the purchase of technology equipment like unified communications, AV technology, video surveillance, cybersecurity, and any other related technology solution. If your company expects growth or change, a termed rental option like TAMCO Shield, technology equipment as a service, may better suit your needs. Be sure to understand all of the lease options that are available so you are able to make an informed decision.

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The HOW TO BUY is just as important as the WHAT TO BUY

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Compare All of Your Tech Equipment Payment Options

TAMCO Shield, Tech Equipment As A Service

Decision Guide - Choose The Right Payment Option For Your Tech