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OT – Leasing vs Purchasing
Hi Everyone,
just wanted to get some opinions on Leasing vs Purchasing Edit Bays.
My company is considering an upgrade and wants to Lease maybe 4-5 Mac Pros to replace our old G5s. We already have Final cut studio licenses and each Edit Bay has a VTR, either a DSR-25 or a DSR-11 w/ Sony PVM Monitors and Headsets.
Now just wondering if there are any who are already leasing out Machines and how is it working out for them? What kind of setup did you configure if you are currently leasing, and if there are turnkey systems ready to lease, or if you just simply purchase all equipment.
Thanks much.
-David
hmm… I wonder what this button does…
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6 Replies
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I think there’s not a clear answer to this… I’d just buy the systems from a trusted seller and build them that way… the companies personal financial situation should be the determining factor, and whomever does the tax returns should be consulted. However a long lease is a very bad idea… technology moves too fast… and you’ll want to replace your edit system hardware probably about every 2 or 3 years (just as you’re wanting to do that now)…
Jerry
Apple Certified Trainer
Author: “Jerry Hofmann on Final Cut Pro 4” Click here
Dual 2 gig G5, AJA Kona SD, AJA Kona 2, Huge Systems Array UL3D
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We got completely screwed by a company called Genesis Capital in California when we set up our first editing system. They insisted that a 3 year regular term lease was much better for us than a $1 buyout lease. So what happened at the end of the term, we had to purchase everything for “current market value.” So first they got a lot of interest from us over three years and then we had to purchase the gear we wanted to keep above and beyond the lease.
Since then I have not leased anything and only either purchase the gear outright or do a Business Term Loan with a reputable financial institution.
Walter Biscardi, Jr.
https://www.biscardicreative.com
HD Editorial & Animation for Food Network’s “Good Eats”
HD Editorial for “Assignment Earth”“I reject your reality and substitute my own!” – Adam Savage, Mythbusters
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Thanks for the responses! I think we’ll go ahead and not be leasing anything.
-David
hmm… I wonder what this button does…
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I agree with Jerry and Walter. Systems are becoming obsolete much quicker now (1 1/2 to 2 years, and many computer manufacturers and resellers (especially Apple) offer 0% financing for up to 24 months anyway. Back when edit systems were in the $45,000.00 to $100,000.00 range, leasing made a lot more sense, but with a good NLE setup running closer to $10,000 now, (with all the storage and software), it makes less and less sense to tie yourself to a 3 to 5 year lease. I have always found that I can also get a buyer for my used equipment by the time it starts getting older, before the system totally becomes obsolete. Like Walter, I paid way too much interest for 8 years (around 11%), wrapped a new NLE system into an older 5 year lease, and ended up getting hosed at the end because I wanted to keep my monitors and Raid Arrays. I made the last payment on my lease in December and will never lease again. The only upside of leasing is the 100% tax write-off without having to worry about depreciation tables, and the fact that leases don’t count against you as far as cash flow and credit ratings.
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[DavidPeralta] “hmm… I wonder what this button does…”
ha ha haaaaaaaaaaaaaaaaaaaaa!!! Awesome sig.
Walter Biscardi, Jr.
https://www.biscardicreative.com
HD Editorial & Animation for Food Network’s “Good Eats”
HD Editorial for “Assignment Earth”“I reject your reality and substitute my own!” – Adam Savage, Mythbusters
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Thanks Walter, I feel honored that you like my sig. heheh.. =D
-David
hmm… I wonder what this button does…
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