Buy or lease new embroidery machine

I'm in the process of buying a new 6 head barudan is it better to buy it out right or lease it.Any input would be greatly appreciated.

Robert Young's picture

Your accountant should have pretty good advice for you based on your personal position... if you do not have an accountant then I would work on that first!

If you have been in the industry for a while and feel you know what you are doing...then BUY...

If you are new and don't know what you don't know.. then LEASE

If you are new and THINK you know what you are doing... then LEASE.

sorry, I err to the side of caution... TOO many buy machines thinking they are going to be the next "Lands End" only to end up with machines that haven't been turned on in MONTHS! do not be one of those please.

Modern Embroidery Designer
volant-tech.com
volantfineart.com

I'm in the same position our business is going good but working on a single head now. We need 4@6 head but we are very new to this type of finance!

minimalist's picture

What are the lease payments and buyout? If more than the purchase plus interest if you are paying that, then yes the outright purchase is a better deal. You need to take in account the taxes you will pay as well as the write off in the lease versus purchase. I don't like leasing personally because I had to fight with the leasing company at the end of the term when we did the buyout on a band knife splitter.