Woodlands

In some of the ads for used products I've seen, there's either a cash or a "leasing" option. Besides putting it on your credit card (thankfully I have a few offering me good deals on cash advances), are there places that finance for, say, 2-3 years? "Lease" implies to me that they will always own it, you are just paying to borrow it from then, like leasing a house or car.

irene

When negoitating a lease you cant get either a 10% or $1 buyout at the end of the term and keep the bed. All of mine where $1 buy outs. These companies dont want to own the equipment. 3 year has always been my favorite term.

Woodlands

Thanks, Irene. I just couldn't see "leasing" something w/o eventually owning it. So it's really just another way of saying "financing" it? I'd have to compare that against what I get from credit cards and go from there I suppose.

unity

Exactly. Equipment is a little different than a car or home due to dramatic deprecations.

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OMG! I made a post! :)

sunsally

Good question. Most people are most familiar with car leases - which tend to be "residual value" and are like Woodlands describes.

A few - like JK Capital for Ergoline - do the residual leases. But most of the companies doing leasing for tanning use "$1 buyout" as Unity noted. You finance the entire amount, and at the end you pay $1 (although I'm not sure if it is collected to be honest!).

At Highline Capital we use $1 buyout leases. You can select 3, 4 or 5 year terms. Most new salon owners prefer 5 year because it keeps their payments lower in the first couple of years when they are trying to get established. But any are available, and existing salons or those only adding a few pieces will often choose 36 month.

irene

Save the CC for a rainy day... all lease pmts are 100% deductable... shop aroung if you have a decent credit score you in the driver seat. And for the ADDED BONUS!!! I have never had even one lease show up on my credit report... So as I used their money my credit score went up and the low ball offers kept coming in. YEAH

irene

SunSally we can always count on you to pounce.
Woodlands... SHOP around... find a company you can partner with... I've used 4 companies three of them got one bed each over the years...

Frankie

I once was told by a wise `ole man. Buy your space and lease your equipment. If this is not possible for sure lease your equipment. No 5 year lease unless you can pay it off early. Some will allow you to do this. Leasing for 5 years is just too long IMO. Not only will it seem like forever, you probably will need new equipment before the lease is paid. You are paying way too much money for your bed with a 5 year lease. Do the math.

Ezliving_Jim

Another option...

Consider getting a Home Equity Line Of Credit. Generally no cost for unused credit and the interest may be as low as Prime or Prime+1 on the balance owed.

Woodlands

Well, this all may be a moot point since they weren't too happy about my counter offer, but just in case, let's keep this on track.

OK, so there IS leasing like you'd lease a car? i.e. I would lease a machine for 3 years and after 3 years I'd give it back and get a new (probably nicer) machine OR have the option to buy it? With all the changes in beds, it SEEMS like that (or buying 1 year used) would be the best bets?

I have excellent credit so that shouldn't be a problem. Though right now, again, they owe so much on their current equipment that the counter offer fell pretty flat.