Becky

I was wondering if any of you can help me with this question.Does one have an advantage over the other? My husband thinks we should lease so we can upgrade our beds easier. But I was wondering if beds really change that often or not. What is the timespan of new options and how old are beds when they become outdated? I am thinking that if we buy good quality equipment up front, we won't need to upgrade fo awhile. Just maintain the beds properly and buy good bulbs. Any comments?Thanks!

JeffinKC

Thier are advantages and disadvantages to both. thier are different kinds of leases out thier with some you never own the euipment and are able to upgrade more often. Some leases are structured where at the end of the term you pay a buyout fee that may be as low as $1 and then you own the equipment. Thier are also many tax advantages to leasing you are able to write of a majority of the payment where as with a loan you can only write off depreciation and interest. I prefer to buy because the interest rate I get at my personal bank is lower, I don't have to have money up front and I'm free to pay it off when I please. Some leases do not give you an advantage to paying off early so thier are no interest savings. If you buy you can still upgrade by paying off the equipment and selling it or trading it in for new. You should check with your accountant and shop around for the best options and rates. Hope this helps

KouKou

Lease!!!For one, you get G R E A T customer service when you don't own the equipment. Trust me on that.I own 2 salons. The first one I bought. ROI was fast and warranty was slow if anything that broke.Since the second location costed me less money to start, I seem to have a constant smile with how much more helpfull everyone is with me, and with how much more money I have in my pocket.

JeffinKC

Koukou did your leasing company provide the warranty or was that provided by the manufacturer of the equipment ? What type of equipment did you buy that you had problems with ?

KouKou

The eqiupment in question were suncapsuls both times. My first was a 54 lamp VHR both, and the leased one was a 60 lamp VHR booth with a dressing room. With the first one checks were given, and with the money in the bank, calls were not returned, some cracked plastic moldings from the insallation took 4ever to replace etc etc etc.With leasing, just like a pocker game, you have cards up your sleeve. They are called payments. No one mistreats you when you give them money.I have Tan America, Tanses, QDM and Suncapsule mix in my stores. I don't think it's a matter of what equipment I lease or buy, in my experiance I had service problems ONLY with equipment I had bought.

JeffinKC

Koukou I'm sorry but when I've looked at leasing before the lease is done through a leasing company and they pay the manufacturer or distributer up front just as you would if you paid cash. In this situation I'm just wondering why the leasing company would care if the equipment was broken they just want their money. If you lease a car and hit a deer the leasing company still expects you to pay until you get your car fixed right? Now I have a Suncapsule Starship that is on a revenue based lease and part of the lease is a warranty which they are more helpful with because if the unit is broken they don't get paid.

KouKou

JeffinKC,You are correct. That is the way things seem to work. BUT.A few years ago I leased my first car. The contract said that during my lease of 4 years, IF the car got totaled, they would give me FULL value back.There are claws in contracts. Get a lawyer to go through any leasing paper and he/she will find you as many loop holes as you want.