Clean It Up

UK Floor Cleaning Forum => Carpet Cleaning Forum => Topic started by: woodman on December 17, 2003, 08:41:29 pm

Title: Lease or Buy Truck mount ?
Post by: woodman on December 17, 2003, 08:41:29 pm

Fellow 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.

Title: Re: Lease or Buy Truck mount ?
Post by: Dynafoam on December 17, 2003, 08:46:36 pm

Woodman,

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.

John.

Title: Re: Lease or Buy Truck mount ?
Post by: CATMAN on December 17, 2003, 09:11:29 pm

Woodman,

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.

Catman