Rent or Buy

Greg41

Can anyone enlighten me on the pro's and con's on renting a commercial espresso machine against buying new or 2nd hand for that matter.

FreshCoffee2

It saves you using your working capital. Instead of paying the purchase price up front, you pay a  monthly rental fee, and it is easily taken care of within the profit made from the cup sales, even with only a very small turn over of coffee. The down side is  (depending on how you look at it) that it will eventually cost you more than the purchase price woiuld have done if it had been paid up front, and you will never own the equipment. However all the rental payments are tax deductible, while the purchase wopuld have been a capita;l expense, etc etc etc. Be prepared that most coffee suppliers would not sign you up unless you agree to purchase their coffee for the term of the contract. Ofcourse, be prepared to sign a contract that if broken in any way by you, will result in reposession of the equiopment as well as you still being liable for the entire rental to the end of the agreed term AND, be prepared to sign an automatic direct debit authority to protect the owner of the machine. That's about it. Regardz, FC.

Greg41

Thanks for that info FC. That did make it clearer. Didnt realize you had to use the suppliers coffee as well.I suppose if you want it enough you have to pay for it either way.But still as you say the profit will cover it. Thanks FC. Greg.

FreshCoffee2

Glad to help. With regard to "...Didnt realize you had to use the suppliers coffee as well..." Look at it this way, it would be unusual to find a coffee merchant that would rent a machine only without tying it to the supply of coffee, because the coffee merchant is not in the renting business at all & is only renting the machine out as a vehicle to sell his coffee. Regardz, FC.

Greg41

I have to get in the habit of thinking like a business man hey?

Unknown

Greg, Another option is to rent your machine through an equipment company that doesn't tie up itself with a particul coffee brand, therefore wouldn't promote any coffee with the rental. At Barazi, we use the Silver Chef company with all our Bezzers financing. Their Rent-Try-Buy scheme allows you to 'bite on the cake yet leave it as a whole"...you pay a minimal rental fee for a year only, then you are free to choose whether to continue renting, owning the equipment by purchasing in a reduced price or returning it to Silver Chef without a penalty. Will be happy to give you more info. Best to talk to Ofra at: 1-300-550-927 (she's the rental guro in the business)... Regards, Renzo