You've made the decision to invest in your future and own your power equipment. Rather than making payments to lease your generator or engine, you will actually own your power supply with those payments. If you are still unconvinced of the benefits of the extra capital of purchasing your own units, think of the Return on Investment or ROI of power equipment purchase in your industry. To calculate ROI, take into consideration the following factors:
- Savings: At some point, your payments on owning the power equipment end. You've paid off your purchase! This is not true of leasing the same equipment. At some point, your leasing payments exceed the cost of the equipment itself. Now imagine what you can do with that monthly payment after you have paid off the equipment. Imagine what other investments you can make with that capital. Those savings are a major consideration of the Return on Investment when purchasing your own unit. Long term growth is a key ROI of a power equipment purchase.
- Financing costs: The initial monthly payments of financing the equipment are almost always larger than the payments to lease the same equipment. This is the reason it is so easy to settle for leasing equipment - the short term benefit. However, if you invest more capital in the short term over a few years, you will eliminate the long term costs of power equipment. Make sure that you obtain a low interest loan to maximize your investment and your financing decision will pay off for the growth of your company.
- Operational costs: Reducing the overall costs of producing the power supply for your company is a main reason for obtaining power equipment, but owning the power supply is the single most desirable outcome or ROI when making that purchase. While operational costs are initially slightly larger due to the down payment and the monthly payments, once that power equipment is paid off, your operational costs become minimal.
- Upgrading: Look to the future with ROI. Once you own the equipment, somebody is always willing to purchase used power supplies if they have been maintained well. When it comes time to upgrade to the latest model, the sale of your previous equipment is a future ROI when you upgrade in the future. That initial capital pays dividends when your future investments are minimal to maintain a state of the art power supply.
When it comes to making the decision of leasing or purchasing power equipment, Depco Power Systems has three decades of experience. For further information or to ask questions of our trained and experienced staff, contact Us at any time!
