Why not lease a machine??

[elfern]

Hi Everyone,

I am about to open a new shop in Cali and was wondering what are the downfalls of leaseing your equiplment?? Seems like you can lease for a reasonable price and hold on to your cash right?? Am I missing something? You can rent a super for 200 bucks?

Any thoughts?

elfern

 

[Bean Tech]

If you do the math, you can pay off the machine and make money in one year. 20 drinks a day, charging 2.50 dollars in one year is 18250 dollars. Then between 700 and 350 dollars for your pms. You can pick up a new franke for 10000 dollars and if all you did were 20 drinks a day that machine would last for 15 years.

 

[elfern]

Thanks

Thanks bean,

What you say makes sense. Not sure what to do yet though.

Anyone else have any opinions??

Elfern

 

[ElPugDiablo]

Read the leasing contract and find out the net present value of the contract. If you cannot figure that out, your accountant should be able figure it out no problem. My guess is that it is a lot more expensive for you to lease.

 

[CCafe]

If you do the math, you can pay off the machine and make money in one year. 20 drinks a day, charging 2.50 dollars in one year is 18250 dollars. Then between 700 and 350 dollars for your pms. You can pick up a new franke for 10000 dollars and if all you did were 20 drinks a day that machine would last for 15 years.

I have yet to see any super auto make it 15 years! The last one that came even close was 10 years old, I took it out back and put it down myself!

Is 15 years the max life expectancy of a Franke? Because 110,000 cycles is a drop in the bucket.

 

[elfern]

lease

....Better to lease because they don't last anyway??

Anybody know what lease terms are generally offeredd?

Also, anybody know what Superauto brands are being used reliably right now??

Thanks everyone!

Elfern

 

[cafemakers]

You might want to read this article that I posted back in 2005 regarding equipment leasing. My position on this has not changed:

http://www.coffeeforums.com/viewtopic.php?t=2662