Leasing vs. buying equipment.

[CodyWitt]

I need to add a few tracked skid steers to my business. At first glance it looks like there are some pretty good leasing options. Obviously each circumstance is different, but with the type of work I’ll be using them for (slab removal) these machines will be worked hard and the idea of delar service and support is attractive to me. Bobcat seems to offer the best I’ve found so far with a very reasonable buy out at the end of the lease. I’ve spoken with several larger businesses and they lease pretty much everything. Anyone have any experience with this?

[boh347]

Bobcat has a good lease option right now, get a 90hp track steer for under a 1,000 a month. I ended up buying mine because I doubt I’d run it that hard and need a new machine at the end of the lease. Intresest on it was like 1-2% which wasn’t practically nothing.

[Mayhem]

I would PM Curtintex, I bet he could tell you everything you need to know about buying or leasing heavy equipment.


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[BrianL]

I think this is more of a tax issue than equipment issue.

[Kmart49]

You should shoot a PM to CEO (Michael) as this is right up his alley. I'm sure he can answer any questions and point you in the right direction.

[CodyWitt]

Thanks for the advice guys.

[Ryan C]

Dad always told me, "If they can make money leasing it to you, you can make money owning it." Mostly applies to long term assets. If it's something you'll only need for a month or two, lease it. If you plan on keeping them for years, buy them and get the tax benefits on the depreciation side.

[mattjproc]

If you decide to buy you might look into starting a new entity and buying the machine through them. Then lease that equipment from the entity. More tax benefits that way... or so I've heard.

[miket]

Dad always told me, "If they can make money leasing it to you, you can make money owning it." Mostly applies to long term assets. If it's something you'll only need for a month or two, lease it. If you plan on keeping them for years, buy them and get the tax benefits on the depreciation side.

I am sure it depends on a lot of factors, yesterday I applied for a loan for a phase converter. Turns out they want me to lease, with a $1 buyout at the end. Much smaller dollar amount than a skid steer, but after crunching the numbers, the effective interest rate is 30% apr!