Business manager balancing equipment and money, symbolizing cost-effective leasing.

Equipment Leasing: Smart Maintenance Moves to Maximize Your Investment

Mira Elwood in Business & Economy December 2025 • 4 min read.

"Discover how strategic maintenance policies can extend your equipment's leasing period while keeping costs down."

In today's business world, managing costs is more important than ever. One area where expenses can quickly add up is equipment. Companies often lease equipment to avoid the high costs of purchasing, but maintenance can still be a significant burden. What if you could extend the life of your leased equipment while also keeping maintenance costs low? That's the challenge this research tackles.

Traditionally, companies have focused on either fixing equipment when it breaks (corrective maintenance) or performing scheduled maintenance (preventive maintenance). However, new research suggests a more strategic approach: extending the leasing period of equipment with a focus on cost-effective maintenance.

This article will break down the key findings of a study on optimizing maintenance policies for leased equipment. We'll explore how minimal repairs, combined with smart preventive maintenance, can help businesses get the most out of their leased assets. Learn how to strike the right balance between repair costs, maintenance frequency, and lease period to boost your bottom line.

The Sweet Spot: Balancing Lease Extension and Maintenance Costs

Business manager balancing equipment and money, symbolizing cost-effective leasing.

The core idea is that extending the lease period can be beneficial for both the lessor (the equipment owner) and the lessee (the user). However, extending a lease comes with risks. The equipment's performance may decline over time, and the lessor needs to ensure it remains in good working order. That's where a well-planned maintenance strategy comes in.

The study focuses on finding the optimal maintenance policy to minimize costs while extending the lease period. This involves a combination of two key maintenance actions:

Minimal Repair: Fixing equipment failures to get it back up and running quickly.
Imperfect Preventive Maintenance: Improving the equipment's condition at specific times to prevent future failures.

The researchers developed a mathematical model to determine the best approach. This model considers factors like the cost of repairs, the cost of preventive maintenance, the desired lease extension, and the acceptable risk of equipment failure. By plugging in these variables, businesses can identify the ideal maintenance schedule and lease extension that minimizes their overall costs.

Key Takeaways: Smarter Maintenance for Better Leasing

The research demonstrates that a proactive maintenance approach can significantly reduce the overall cost of leased equipment. By strategically combining minimal repairs with imperfect preventive maintenance, businesses can extend their lease periods without sacrificing equipment performance.

The optimal maintenance policy depends on a variety of factors, including the specific equipment, the operating conditions, and the desired lease extension. The mathematical model developed in this study provides a framework for businesses to analyze these factors and make informed decisions.

Ultimately, this research offers a pathway to smarter equipment leasing. By embracing a strategic maintenance approach, companies can unlock cost savings, improve equipment reliability, and gain a competitive edge.

About this Article -

This article was crafted using a human-AI hybrid and collaborative approach. AI assisted our team with initial drafting, research insights, identifying key questions, and image generation. Our human editors guided topic selection, defined the angle, structured the content, ensured factual accuracy and relevance, refined the tone, and conducted thorough editing to deliver helpful, high-quality information.See our About page for more information.

This article is based on research published under:

DOI-LINK: 10.1088/1757-899x/337/1/012068, Alternate LINK

Title: Policy For Equipment’S Leasing Period Extension With Minimum Cost Of Maintenance

Subject: General Medicine

Journal: IOP Conference Series: Materials Science and Engineering

Publisher: IOP Publishing

Authors: C Lestari, N Kurniati

Published: 2018-04-01

Everything You Need To Know

What does the study recommend as a smart way to maintain leased equipment?

The study suggests that a combination of 'Minimal Repair' (fixing failures quickly) and 'Imperfect Preventive Maintenance' (improving equipment condition to prevent failures) can optimize costs and extend lease periods. By strategically combining these two maintenance actions, businesses can maximize the value of their leased equipment.

What factors does the mathematical model consider when determining the optimal maintenance policy?

The mathematical model considers several factors, including the cost of 'Minimal Repair', the cost of 'Imperfect Preventive Maintenance', the desired lease extension, and the acceptable risk of equipment failure. By inputting these variables, the model helps businesses identify the ideal maintenance schedule and lease extension that minimizes overall costs.

What's the major benefit of strategically combining minimal repairs with imperfect preventive maintenance on leased equipment?

The key benefit is reducing the overall cost of leased equipment while still ensuring it remains in good working condition. By using a proactive maintenance approach of combining 'Minimal Repair' and 'Imperfect Preventive Maintenance', businesses can extend their lease periods without sacrificing equipment performance, leading to potential cost savings and increased efficiency.

Does the research discuss using condition monitoring or predictive maintenance? If not, how might those strategies further improve maintenance on leased equipment?

The research does not explore the specifics of condition monitoring technologies or predictive maintenance techniques. Incorporating these advanced strategies could further optimize maintenance schedules by providing real-time data on equipment health and predicting potential failures before they occur. This would allow for even more targeted and cost-effective 'Imperfect Preventive Maintenance'.

How does implementing 'Minimal Repair' and 'Imperfect Preventive Maintenance' affect a business's budget and resource allocation strategies?

Implementing a combination of 'Minimal Repair' and 'Imperfect Preventive Maintenance' policies can have significant implications for budgeting and resource allocation. A shift towards more proactive 'Imperfect Preventive Maintenance' might require an initial investment but could lead to lower overall costs in the long run by preventing major breakdowns and extending the lifespan of leased assets. This will influence how funds are allocated between reactive repairs and proactive maintenance programs.