Leasing

[NewGuy 14]

anyone ever tried leasing pressure cleaner and/or equipment? If so from who and what was the experience like?

[AquaMike 36]

I'm interested in seeing the answers. We were thinking of doing a full maintenance lease on washers in our local area. Will cover everything except abuse and hoses. Return it in 3 years for a new one and away you go. Still crunching some numbers before I make any decisions.

[Alexy 85]

anyone ever tried leasing pressure cleaner and/or equipment? If so from who and what was the experience like?

With out a doubt leasing pressure washing equipment was THE WORST BUISNESS DECISION I EVER MADE.

Leased a pressure washer from Direct Capital Leasing. Up front costs are usually close to a down payment you could put on straight financing equipment. The write off you get from the lease financing is disappearing under the new tax rules so there is no more benifit there. The repair costs on the equipment were allways contested as they would say any damage was from some form of imagined abuse we did to the equipment. At the end unless it is written in as a specific price buy out the lease company will want close to new/used price for the equipment. We finished our lease almost 2 years ago and we are STILL getting bills for the taxes on the equipment since they did not notify our municipality it had been taken back.

My advice look for used equipment or if there is a large piece of equipment yuou need rent it and build the price into the job.

[bks0005 14]

DO NOT LEASE ANYTHING! I am halfway into a 3 year equipment lease and when it is all done I could have easily bought two new rigs like i want them. Worst business move I have even done!

[NewGuy 14]

Wow sorry to here that..thanks for the advice though

[JDhomeservices 15]

Really? I'm on the process of trying to get an equipment lease approved, but the way I'm doing it seems different. It's basically a loan. I pay first and last pay up front, decide how long I want to stretch out the payments, and at the end of the lease, I buy out the equipment for 10% of the total amount leased. Doesn't include repairs or anything, but it sounds like a program to me... Now you got me worried.

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[JDhomeservices 15]

*Like a good program I mean.

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[Alexy 85]

Your crazy to lease anything other than trucks. If you have to rent your equipment first and take the income you make towards the purchase price.

[bks0005 14]

That is the same lease I did JOSH but have the $1 buy out at the end. There are a lot of extra stuff you will have to pay for throughout the year and they will add there fee to it as well. Save yourself the aggravation and just buy it yourself or save up the money and make a bug down payment. The lease will cost you a lot more in the long run than you will have. With my lease payments I could have paid off my rig by now and have it free and clear, instead I still have 18 more lease payments to go.

[NAPWO 21]

At my former employer I wrote a lot of "leases" though they were really "lease-to-own" financings. A true "lease" is usually where you pay for equipment and use it but it goes back to the leaser when the time commitment is up. When you lease-to-own, you have a way at the end of the lease to have that equipment be yours. Most folks took that route. The advantages to a "lease-to-own" are; if you are just starting out, you can get a peice of equipment you need without having to spend you current capital to get it. Keeping your cash on hand and getting the equipment working to make it's own payment can be HUGE when first getting started. Keep in mind, any financing from any source will cost but if this allows you to have new equipment and grow, then it very well may be benificial to you. Paying outright is always least costly. Then a bank loan seems best next. The leases-to-own route is a bit more expensive, but for many, is the only way to get financed to grow. I have had many people very happy with "leasing-to-own" their equipment. If you have the need, and want equipment, but also want to keep your working capital, try a lease and get the equipment paying for itself. It really can make you money in the long run.....

[Chappy 138]

I don't see how your lease has anything to do with maintenance. Maybe you expected more than was written in the lease? Or you wanted more than what was on a true lease?

I have two leases for my two skid units. I couldn't ask for better terms and for 36 months I have much more equipment than I could have had for the cash I had on hand. Plus having that cash slowed me to pay off my truck early, buy a new trailer with cash, and be able to expand in ways I wouldn't have been able to otherwise.

I think its the best decision I ever made. Im willing to bet you'll find as many that are happy as the opposite.

Dont just settle for the terms your local dealer gives you. There are plenty of leasing companies nationwide to compare. Doing one that works for you.

As for tax benefits, they will be different in canada than here. But congress can change any tax benefit at any time, so you can't use that as the only consideration.

[bks0005 14]

What are the names of Leasing companies that everyone is successful with?

[Alexy 85]

I don't see how your lease has anything to do with maintenance. Maybe you expected more than was written in the lease? Or you wanted more than what was on a true lease?

I have two leases for my two skid units. I couldn't ask for better terms and for 36 months I have much more equipment than I could have had for the cash I had on hand. Plus having that cash slowed me to pay off my truck early, buy a new trailer with cash, and be able to expand in ways I wouldn't have been able to otherwise.

I think its the best decision I ever made. Im willing to bet you'll find as many that are happy as the opposite.

Dont just settle for the terms your local dealer gives you. There are plenty of leasing companies nationwide to compare. Doing one that works for you.

As for tax benefits, they will be different in canada than here. But congress can change any tax benefit at any time, so you can't use that as the only consideration.

I t was written into the lease that all routine maintinance to include oil changes, burner ignition and filters were covered. EVERY time it was taken in for service per hour meter or a issue ( seals failed on pump 2 years into the lease ) the issue was contested, that inluded the manufacturer's reccomended first tune up when it was new.

Bottom line for straight pressure washer in this market there are some phenominal deals on used equipment that will cut your costs by thousands that are far better than a lease. Not to mention that you will also need specific insurance that will cover the cost of the lease ( not just the property) over the life of the lease.

[Beth n Rod 1,279]

Leasing is a good way to get better equipment and speed up your production and increase profits.

We did it and it helped us tremendously.

We were able to pay off the lease and buy other equipment as well due to the increase in revenue.

Rod!~