Would you Rent a CMC

[Merlin]

In this present economic climate how would you finance a CMC - Regardless of Make or Model.

A. Out right purchase from Distributor.
B. Out right purchase with Bank Loan.
C. Rent Only
D. Rent with a Purchase option at 6 month or 12 month breakpoint.

[Moglet]

At this precise point in time, I'd have to go for "E: None of the above."

Much as I would love to have one, I've managed for nearly 4 years without a CMC (thanks to you guys, I've been able to outsource the odd special when necessary). I would not consider taking on a CMC until things improve. Depending on the length of the downturn, I'd be more inclined to rent or lease if I were to go ahead with a CMC in the future.

Hope this feedback is useful, Merlin.

BTW, how do "rent-with-option-to-buy" schemes work?

[Roboframer]

I'd go for 'A' but first time it was a go-er we got a new bathroom instead, second time we got a new car - could go for it pretty soon again but a new kitchen is also on the cards.

[Merlin]

The reason I posted the question was purely out of interest.

I have had a number of enquiries about the rental and lease to buy options.
A few have said that they are looking ahead to when the economy will start to pick up - probably this time next year and were not sure which way to go.

On a lease purchase option you basically rent the machine until you reach one of the chosen 'break points' - 6 months or 12 months.
At that time you are given the option to buy and granted a discount on the sale price equal to X number of month rental fees.

If you decide not to buy you continue to rent.
As with most rental or lease to buy there can be quite a considerable lump to pay up front.

[Moglet]

One thought: at the moment, option B might be a non-starter for some businesses. I don't know about the UK, but over here it is extremely difficult to actually get a bank loan at the moment (even for long-established businesses in all sectors). Don't know how "open for business" Irish leasing companies are by comparison.

[Not your average framer]

Hi John,

I would not rent or take out a loan to buy anything. It's buy it or forget it for me.

As the recession goes on, there might be some nice second hand ones on offer at good prices, then that's more like it!

[Moglet]

On a lease purchase option you basically rent the machine until you reach one of the chosen 'break points' - 6 months or 12 months. At that time you are given the option to buy and granted a discount on the sale price equal to X number of month rental fees.

Presumably if you decide to buy at, say, the 12-month break point, the balance is payable immediately?

[JFeig]

My first CMC (mid 1990's) was a leased unit from Wizard. I sent it back after they did not provide an update compatible with the OS on the computer the supplied.

My second CMC was purchased on a 48 month bank loan.

[prospero]

Only problem with leasing stuff is, the finance is generally provided though a seperate company. If you have a maintainance arrangement in the contract and the leasing company goes belly-up, you could end up being obliged to keep up the payments on a basically u.s. piece of kit that you can't afford to have repaired. Finance companies never go bust. I say this as a mate of mine once had this happen with a leased photcopier.

if you have the work for it, a CMC would no doubt pay for itself in a very short time. But for that layout I would want it running 24/7. (Like me. )

[WelshFramer]

At the moment I'm renting my Wizard.

I decided to rent because: I wasn't sure how reliable it might be; I didn't know if I might want to swap it for a different model; I didn't know if I really needed a CMC; I didn't have the capital and the wife wouldn't lend it to me.

Anyway, we're remortgaging the house so I'll be buying the Wizard at the end of this month, I hope. I percentage of the monthly rental goes towards the purchase price so I think it will now cot me about £7500 to buy it after renting for about a year.

[Bill Henry]

If I were to acquire a CMC (which I cannot justify at the moment) I would go with a lease program.

If, at the termination of your lease, they come out with a new and improved, fancier machine which will now do your laundry and take out the trash, you are not stuck with an obsolete, coal burning model. If you don’t own the unit outright, you at least have the option of continuing the lease or canceling it.

[span2iels]

Before purchasing a CMC it is worth checking out if there are any grants in your particular area. I did when purchasing my Valiani and got an engineering grant that paid for half the CMC before VAT but that was a few years ago. Worth checking your local Business Link.