Commercial holiday displays range from tens of thousands of dollars for a modest downtown setup to well over $500,000 for a full-scale light show. For many organizations, that number is more than a single budget cycle can absorb. As an alternative to purchasing, a growing number of municipalities and commercial districts are choosing to lease their displays. Should you lease or buy? Here’s how to decide.
Holiday Outdoor Decor leases directly to municipalities, districts, and commercial properties. There is no outside finance company to source and no separate service agreement to manage.
What is display leasing?
Display leasing is a financing arrangement in which you use your holiday display for a set term rather than purchasing it outright. At the end of that term, you may return the display, renew your lease with updated decor, or purchase it at a reduced price that factors in depreciation.
Leasing is different from financing. When you finance a display, you take out a loan and own the equipment once it is paid off. With a lease, the display returns to Holiday Outdoor Decor unless you choose to buy it.
How does a display lease work?
You enter into a lease agreement directly with Holiday Outdoor Decor. The agreement sets the term and your payment schedule, and those payments stay fixed for the life of the lease. HOD terms run for one year or multi-year, up to a maximum of three years.
Service is part of the agreement. Repairs and replacements are covered, and in many cases so is storage between seasons, so your team is not tracking down a damaged pole decoration in mid-December.
Three-year leases also allow for product swaps as inventory permits, typically a few pieces each season rather than a full contract replacement. Swaps operate on a first-come, first-served basis, which makes early planning worthwhile. Many organizations favor the three-year term because it balances a lower annual rate against the ability to refresh the display.
Key takeaway: An HOD lease is a direct agreement with fixed payments, service included, and three options at the end of the term.
What are the pros of leasing?
- Your capital stays available. Leasing spreads display costs over time rather than requiring a six-figure outlay, which preserves budget for other community priorities.
- Payments are predictable. Fixed annual costs make multi-year planning straightforward, particularly against an approved operating budget rather than a capital request.
- Service and storage are handled. Repairs, replacements, and in many cases off-season storage are built into the agreement.
- The display can evolve. Swaps on three-year terms let you respond to what your community reacts to without reinvesting in the whole setup.
What are the cons of leasing?
- Over a long enough horizon, leasing a stable display costs more than owning the same display outright.
- Custom design work is limited. Lease inventory offers considerable range, but a display built entirely around your landmarks and colors belongs to ownership.
- Inventory is first come, first served, so the pieces your community expects to see year after year need to be reserved early.
Key takeaway: Leasing suits organizations that want commercial-grade decor without the upfront cost, and value flexibility over permanence.
What are the pros of buying?
- Complete customization. You control every detail, and displays can be designed around your community’s identity, landmarks, and character.
- Long-term value. Commercial-grade decorations are built for a seven- to fifteen-year service life with proper care. For a display you intend to use that long, purchase is usually the lowest total cost.
- Full control of the timeline. Your display goes up when you want it up and comes down when you decide.
What are the cons of buying?
- Storage is the factor most organizations underestimate. A medium-sized display can require several thousand square feet of climate-controlled space to prevent damage from humidity and temperature swings. If you do not have it, that cost belongs in your purchase math.
- Maintenance is yours. Bulbs fail, cords fray, and outdoor exposure takes a toll. Many organizations budget 1% to 3% of display value annually for upkeep.
- You are committed to your inventory. Refreshing an owned display means buying new pieces.
Holiday Outdoor Decor offers white glove installation, storage, and maintenance for owned displays in select regions, which lets you own the decor without absorbing the operational side.
Key takeaway: There are pros and cons to both leasing and buying. The right option depends on your storage, your budget cycle, and how long you expect to use the same display.
Two questions that usually settle it
What is your storage situation? Square footage, climate control, and who moves it. This answer alone resolves most lease versus buy decisions.
How does your organization purchase? Holiday Outdoor Decor is a vendor on local and national purchasing cooperatives including BuyBoard, which can ease bid requirements for municipalities and provide access to competitive pricing either way.
Many established displays combine both. Organizations buy the signature pieces that define their identity and lease the surrounding decor so the streetscape changes from season to season. If short-term rental is also worth considering, we compare all three approaches here.
Want to discuss whether leasing or buying is right for your community? Request a quote and our team will price both against your space and budget.