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Equipment Leasing - Anyone Done It?

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    #1

    Equipment Leasing - Anyone Done It?

    All,
    I am considering making some investments in new equipment (two new monitors, a new sheetfed, duplexing scanner, a new printer) and am going back and forth between leasing and buying. The lease I'm looking at is 36 months, with 0 interest, so that cost isn't a factor. I know larger businesses tend to lease things like printers and copiers, just wondering if any of you do it. Thanks!

    ATG
    "Congress has spoken to this issue through its audible silence."
    Anyone ever notice they beat the daylights out of the definition of a child, but they don't spend much time at all defining "parent"?
    Tags: None
    #2
    Q&a

    Has anyone done this? Yes.

    I'm assuming there is a deeper question, such as "Rent vs. Buy" or "Rent vs. Finance" or "How many months' lease is optimum" Has something gone over my head?

    Comment

      #3
      The only thing I would probably consider leasing would be a printer/copier. This would be only if I was a larger business though. The person I worked for prior to going into business for myself always leased his printer/copier. They often included maintenance on them for a so much a year.

      If you can find a good deal monitors are not too expensive. I paid $99 for a 19" monitor. Bought three. The duplex scanner can be a bit expensive depending on the model you pick out. The scansnap set me back about $450 bucks and believe me it pained to pay that. If you lease a printer/copier that may even be included along with a fax function.

      For me not a really an option as a smaller operator but I am sure it would help if you are a larger office.

      Comment

        #4
        What is a lease...? A lease is where at the end of the lease you buy or return what you leased............. If you keep it and don't have to buy it - it was not a lease but a purchase/finance. Anytime the buyout is less than 10% of the purchase price it is a purchase/finance.

        So if you are saying that it is a lease than every 3 years you are entering a new lease with new equipment and new monthly payments..
        This post is for discussion purposes only and should be verified with other sources before actual use.

        Many times I post additional info on the post, Click on "message board" for updated content.

        Comment

          #5
          LOL...I'm sure if this was a client asking you the very same question you'd ask for more information such as:

          Price to buy outright and what warranty comes with the equipment
          Lease terms (including monthly payment, who owns the equipment at the end of the period, who services the equipment, any limit to copies etc)

          Are you comparing apples to apples ie is it the same equipment you're considering purchasing vs leasing?

          I

          Comment

            #6
            thanks for the responses

            everyone. Yes, I was a little vauge. You have all pointed out some good things to check into before I decide that I wouldn't have thought of on my own.

            The lease is an operating lease, so the lease trust owns the product at the end with a predetermined option to buy. The equipment I'm considering leasing is a little more expensive than I would be otherwise looking to buy outright, so making monthly payments is much easier than forking over a chunk of cash.

            At the end of the day though, the thing that pushes me in the direction of leasing is this: I have 2 printers in my office, both less than 2 years old, and both of which are in some state of disrepair. With the disposable nature of electronics these days, it makes sense to me just to hand it all back at the end of the lease and make it someone else's issue.
            "Congress has spoken to this issue through its audible silence."
            Anyone ever notice they beat the daylights out of the definition of a child, but they don't spend much time at all defining "parent"?

            Comment

              #7
              JMO but leasing companies make significant profits. In my life I've typically taken the risk of ownership on myself to pocket those profits myself. They only time it's better in my opinion is if the cost of replacement is so prohibitive that it would seriously impact my lifestyle and a maintenance agreement isn't a viable replacement option.

              But then again I pay cash for everything in my life.

              Comment

                #8
                Originally posted by Roberts View Post
                But then again I pay cash for everything in my life.
                My wife and I have a plan to be doing just that within 3 years. I commend you for your doing so - debt is just a form of servitude.


                ATG
                "Congress has spoken to this issue through its audible silence."
                Anyone ever notice they beat the daylights out of the definition of a child, but they don't spend much time at all defining "parent"?

                Comment

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