Carpet Cleaning Issues - Carpet construction, upholstery cleaning, stain removal, equipment, events, etc.
Lease or Buy Truck mount ?
Posted by woodman (woodman), 17 December 2003Fellow carpet cleaner asked me today if I recommend a company that leases Truck Mounts as he coudn't afford to buy new one outright, cash flow and all that,
Can't say there is one I would recommend as don't have dealings with too many, I believe altec lease is there any others that you guys know off? do Prochem lease purchase?
I suggested he loaned the money and paid back monthly, seems to me the same as lease only cheaper with competetive rates out there but he feels he may have problems getting a loan so lease the only option.
Posted by Dynafoam (Dynafoam), 17 December 2003Woodman,
There may be a tax advantage in leaseing, in that the lease fee is deductable, which often amounts to more than the depreciation - circumstances vary so advice from a good accountant should be sought.
Posted by RAINBOW69 (CATMAN), 17 December 2003Woodman,
Tell your friend to get a loan and buy it outright. Leasing is not cheap for this type of equipment. He can still claim the VAT back on an outright purchase, and it can be written off quicker in the books against depreciation.
I have just gone through the same process. Leasing will cost about £70-80 a week +VAT. A striaght loan is cheaper.
Also lease purchase is through a finance company, it's not a rental to the truckmount supplier.
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