July 18, 2017
Buying vs. Leasing Landscaping and Pool Equipment
When you start noticing that your pool and landscaping business equipment have seen better days, you’ll have to decide whether you should purchase new pieces, or lease them instead. Every business is different, so you’ll need to consider which option is right for you and your team.
In this post, we’ll detail your options when it comes to deciding between leasing or buying equipment.
1. Consider the cost: Understandably, your business is likely adhering to a budget. You can’t ignore the fact that landscaping and pool equipment can be expensive, so you should strive to find a cost-conscious option that works for your business. That’s why leasing can be beneficial. When you lease pool or landscaping business equipment, you’re provided with new equipment at a more affordable price than if you were to buy it. Plus, the leased equipment will remain under warranty for the length of time decided in your lease agreement. Therefore, if it breaks, your dealer will repair it for you, or you’ll be given a replacement. Still, if you want to have a piece of equipment that you can get used to having for a long period, then you might want to buy it.
2. Anticipate maintenance: Even once you have updated equipment, it will inevitably need to be repaired at some point. With the amount of work you’ll be using the equipment for, there will be damage over time. Contemplate the type of equipment you need, and how often you think it will need upkeep. This will help you decide whether you should lease or buy. When you lease, you’re guaranteed maintenance and updates for the duration of your contract. If you need items that will need consistent upkeep, leasing may be the right choice. Buying an item will give you full ownership, but you’ll have to pay for repairs as they occur.
3. New versions vs. consistency: Another factor to consider when deliberating between leasing or buying equipment is if you want the latest models, or you prefer consistency. When you lease equipment, you’ll get the latest versions of equipment, while when you buy you’re committing to one piece of equipment. If your pool or landscaping business ideas require new technology, then you might want to lease. In comparison, you may favor sticking with the same piece of equipment. When you buy landscaping or pool equipment, you and your team can learn how to use it, and then won’t have to go through training for that piece of equipment again. Buying equipment can increase productivity, since you won’t have to learn how to use new models.
4. Determine if you’ll need additional financing: As we previously mentioned, pool and landscaping business equipment costs can add up. Still, this isn’t an expense that you can pass up, since it is pivotal to the function of your business. If your equipment is broken, you’ll need to replace it as soon as possible. Due to this, applying for a small business loan can be beneficial. Once you decide whether you want to lease or buy equipment, you should review your budget and see how much financing you need to afford it. Having financing will allow you to purchase or lease your equipment, so you’ll be able to get back to work!
Deciding whether to lease or buy equipment can be a difficult decision, but by considering the elements listed in this post, you’ll be able to make the right choice for your business. Has your landscaping or pool business leased or purchased equipment? Tell us about your experience in the comment section below.