to buy or lease

[bluerider]

I am looking to add a skidsteer to my business in the next year. I am thinking about a S250. Been doing my research into them, checking out bobcats website. I see that they offer a lease option. I was wondering if anyone has gone this route? If you have, tell me about you thoughts on it? Would you do it again? Also, does anyone have any idea how good your credit has to be to qualify for the lease program? Thanks.

 

[WesternStar]

I would think leasing would be the most economically rewarding option. I know that leasing my vehicle as opposed to purchasing, when it came to tax time I was able to write off my payments. Not so with purchasing.

 

[SS Kanga Hire]

I would think leasing would be the most economically rewarding option. I know that leasing my vehicle as opposed to purchasing, when it came to tax time I was able to write off my payments. Not so with purchasing.

See, that's an attitude that puzzles me greatly. - If you buy a machine, the entire cost of the machine is a deductible and indeed depreciable item. Sure, you may need to spread it out over a few years (depending on your income/tax planning) but for the life of me, I can't see any benefit to leasing something for more than the cost of simply buying it outright. Maybe it depends on the service life of the machine e.g. if you knew you were going to kill it within a three year lease, perhaps there would be a point in leasing but even then I reckon you'd still be ahead by owning.

 

[mmsllc]

See, that's an attitude that puzzles me greatly. - If you buy a machine, the entire cost of the machine is a deductible and indeed depreciable item. Sure, you may need to spread it out over a few years (depending on your income/tax planning) but for the life of me, I can't see any benefit to leasing something for more than the cost of simply buying it outright. Maybe it depends on the service life of the machine e.g. if you knew you were going to kill it within a three year lease, perhaps there would be a point in leasing but even then I reckon you'd still be ahead by owning.

I would never lease a machine. I've never leased a vehicle, either. I think you are ALWAYS better off in the long run to buy the machine. If you can buy an older machine, then you will be ahead of many others that pay monthly lease payments. Just think of how that would lower your overhead / operating cost per month. I think most guys on here would also enjoy knowing that they are not paying someone for only the use of the machine & then never own it.

 

[GreenDigger74]

I would look for yourself an older machine that is still in good operating condition. If you take your time and look for a good deal, the money saved compared to the time looking, in the long run, will be well worth it. Better to not owe payments on a machine that you don't even own. As long as you take care of it, it will always hold equity in some form as well.

 

[farmboy555]

I would look for yourself an older machine that is still in good operating condition. If you take your time and look for a good deal, the money saved compared to the time looking, in the long run, will be well worth it. Better to not owe payments on a machine that you don't even own. As long as you take care of it, it will always hold equity in some form as well.

My first backhoe back in the 70's I leased it with the option to buy. I purchased it in the end. My deal was that 90% of my lease payment went toward down payment if I decided to buy it. So talk to your dealer and see what kind of options they offer Leasing may be a great thing. Gives you time to see if it fits your type of work, may decide you need a different size or don't need it at all It's all about options ????

 

[Tazza]

My first backhoe back in the 70's I leased it with the option to buy. I purchased it in the end. My deal was that 90% of my lease payment went toward down payment if I decided to buy it. So talk to your dealer and see what kind of options they offer Leasing may be a great thing. Gives you time to see if it fits your type of work, may decide you need a different size or don't need it at all It's all about options ????

May be best to talk to your accountant to get their input, they will know the best route to take. Being a business, there will be loopholes that they will know. If it was for home use and the odd cash job, buy a good used one.
There is logic in buying a used machine to start with, but then you have issues if the machine had some hidden issues that bite you on the butt later. New means warranty, so if things did break, you know you won't have a nasty supprise.

 

[befuop]

It depends on how long you will be using the equipment. If you will have to use it frequently, then buying one would be a good investment. If not, or you'll only use it once, then leasing is an option.