Buy, rent or lease. What’s the best option for me?
You have options when considering floor cleaning equipment. Let's explore and compare buying, renting and leasing to see what might work for you!
Are you asking yourself whether you should buy, lease or rent floor cleaning equipment? In this article, we will discuss some basics about these options that you can apply to your unique situation. And, of course, we are available and happy to answer your questions, demo equipment and discuss options that might work for you! Contact us today!
- Return-on-Investment (ROI)– Buying means you can resell the equipment which can increase your ROI. The resale value of the equipment will depend on its residual value and how well it's maintained. Also, purchasing provides better ROI compared to long-term rentals since rental fees are higher than monthly financing costs.
- Customization – Because you own the equipment you can make more modifications to it than you could with a rented or leased model.
- Tax Deduction – Floor cleaning equipment that is purchased can be eligible for tax deductions, unlike rented or leased models.
- Liability – Rental and lease models must be returned after a set period of time and be in reasonable condition based on the wording of your contract. Purchased equipment is yours to keep, so cosmetic damage isn’t a concern.
The downside? The initial cash outlay is substantial. You may need to arrange financing.
This option works best for companies who will use the equipment regularly and expect to keep it for at least five years. Also, if a company needs a lot of customization, buying the equipment may be the best option.
- Accommodates Short Term Use – Renting cleaning equipment as needed for short term purposes can be an affordable way to have additional equipment only during the times you need it.
- No Long-Term Commitment – Since rentals are typically paid for on a month-to-month basis, you can return the equipment or swap it out for a different model from our inventory.
- Short Lead Times – Morrison has ample equipment inventory on hand, so you don’t have to wait for a new machine to be built and shipped to you from the factory.
- No Financing Required – Renting requires no capital financing, eliminating an extra step in the approval process.
- Reduced Maintenance Costs – Planned maintenance is built into the Morrison rental contract. Any time your machine is down due to normal wear and tear, a technician will come to repair it at no added cost.
The primary downside of renting is cost. Rental day rates are much higher than the cost of purchased equipment.
Renting equipment makes sense if your need is short-term, if cash flow is an issue, or if you’d like to “try before you buy”.
- Accommodates Predetermined Replacement – Leasing allows you to set the number of years for the term of the lease based on your operation’s needs. Shorter leases tend to work better for companies that want to be more fluid.
- Lower Monthly Costs – Leasing offers lower monthly payments compared to buying or renting, allowing you to pocket more cash on a monthly basis.
- Expensing Costs - Leasing gives you the ability to budget your lease payments, which typically count as a business expense. This reduces debts on your financial statements while also leaving you open to claiming the expense on taxes. (Check with your accountant to be sure.)
- Flexibility – Leasing allows you to take advantage of the latest trends in cleaning equipment. Also, when the terms of the lease are up, you can make adjustments as needed to fit your constantly changing needs.
The major downsides of leasing are the loss of resale potential and the required maintenance schedule that’s built into most leasing agreements.
Businesses choose to lease cleaning equipment primarily to improve cash flow and preserve working capital. This is especially true for younger businesses that are still growing.
Rely on Morrison
The floor cleaning equipment professionals at your local Morrison Industrial branch are happy to help you determine what’s best for your operation, and, whether buying, leasing or renting equipment makes the most sense for your business.
We offer a wide variety of professional, floor cleaning equipment from Nilfisk Advance, PowerBoss, FactoryCat and Kodiak, floor cleaning chemicals, plus our factory-trained service technicians offer ongoing support and fast, knowledgeable service and parts, brushes and squeegees for all brands of floor cleaning equipment.