Leasing out equipment

[Roasting Realtor]

Does anyone have any experience, leasing rates, terms, etc. in leasing out their own equipment or rent to own type situations?

[jspain]

Does anyone have any experience, leasing rates, terms, etc. in leasing out their own equipment or rent to own type situations?

Bill,

What type of equipment? Yes I have experience on leasing and lease to own.... PM or call if you like and I'll share.  Jim

[blzrfn]

I don't have any experience with leases in this industry, but in general you will pay more total, with less money up front but more monthly with a residual buyout option.  Also, in general, leases are not shown as debts on your credit report so free up your credit for other purchases if necessary. 

[peter]

Plus, the lease payments are based on the price of the whatever when it's new, and what they anticipate the whatever to be worth at the end of the lease.  For instance, two leases on two different cars will have different monthly payments, even though they had the exact same purchase price; the one expected to have less value at the end of the lease will have a higher monthly payment.

Adding that to the prospect of leasing coffee equipment might make it more unreasonable, as the resale value of coffee equipment is pretty shabby.

[Tex]

Are you planning to be the lessee or lessor? The former is bad unless you're prepared to stand behind the equipment with 24/7 service.

The latter can be expensive long-term, but there are business models that say owning nothing and renting/leasing all equipment is a good way to quickly grow the business.

[Roasting Realtor]

I have been asked by my church to consider a lease option on the equipment I am letting them use.  I have the ES-2A, a Nuova Simonelli w/o doser, and would also need to let them use my Faema MDF grinder with doser.  I am not certain I want to part with my 2 grinders, but I am sure I can find a good grinder for them eventually. 

I am curious as to how to figure lease rates and that kind of stuff.  Written lease, or verbal? 

As it is, I am the one they call when something breaks anyway, so the maintaining by me is already being done .

[Tex]

I have been asked by my church to consider a lease option on the equipment I am letting them use.  I have the ES-2A, a Nuova Simonelli w/o doser, and would also need to let them use my Faema MDF grinder with doser.  I am not certain I want to part with my 2 grinders, but I am sure I can find a good grinder for them eventually. 

I am curious as to how to figure lease rates and that kind of stuff.  Written lease, or verbal? 

As it is, I am the one they call when something breaks anyway, so the maintaining by me is already being done .

As for lease/rent rates, call a local supplier and see what they charge with a service contract included. I usually end up giving equipment to the church and writing it off.

[peter]

If you can't find an outfit in your area that leases, or doesn't have comparable equipment, and you don't want to donate and write off, I'd suggest calculating what you feel your equipment is worth now, taking a SWAG of what it'll be worth in 2 years, dividing the difference by 24, and that's what you charge them.

[Tex]

If you can't find an outfit in your area that leases, or doesn't have comparable equipment, and you don't want to donate and write off, I'd suggest calculating what you feel your equipment is worth now, taking a SWAG of what it'll be worth in 2 years, dividing the difference by 24, and that's what you charge them.

If anything it'll be worth more than the low-ball price he paid. At least with writing it off you can use eBay figures to corroborate your estimated current value.