Buying a new golf course equipment is an important decision. The high cost of maintenance equipment makes it a complex decision, especially when it comes to golf course mowers or some other essential maintenance equipment. You should learn about the options available to you and weigh them wisely.
It is a needs, priority and budget driven decision. However, you have to follow some guidelines. In some cases, the option of leasing may be the right option for you.
So, shall you purchase or lease?
Buying a golf course mower or some other golf course equipment is a major expenditure. However, once it’s done, it’s done. The ownership and maintenance cost of modern golf course maintenance equipment is pretty low. However, you should also consider the resale value of equipment. And also, the equipment should deliver the performance, efficiency and quality you want.
On the other hand, leasing is a good idea if you can’t bear that big expenditure. With leasing, you get more flexibility upfront. You can get better golf course equipment. You can cover the cost over multiple budget periods.
When you are leasing, you can create a natural golf course equipment replacement timeline. As the lease comes to an end, you can replace equipment as per your needs. This makes sense for equipment such as golf course mowers, and cars.
Latest equipment delivers better performance and experience. In case you are leasing, lease from a company having expertise in the industry. Work with someone who understands the marketplace and also the equipment you want to lease.
That company can be a proactive partner and provide you with recommendations that are in the best interest of your golf course.
Choosing the type of lease
Shall it be conditional sales contract (CSC) or fair market value? Before that, you should consider the type of equipment you need. If you are going to use a golf course equipment frequently and regularly, and you are going to replace it after the lease ends, go for a fair market value lease. As the lease expires, that equipment can be purchased for a fair market value. Most of the times, golf courses return the leased equipment and sign a new lease agreement.
This allows them to lease the latest developed equipment at very affordable rates. They not only save money also get great results. If you are satisfied with the performance of the leased equipment, you can also extend the lease.
When it comes to aerification equipment, tractors, sprayers or any other long-term use golf course equipment, you should go for CSC a lease. It is a lease-to-own agreement. When the lease comes to its end, the title of ownership is transferred to you. Now, you can resell the golf course equipment or use it. Equipment such as a tractor and sprayer are used less frequently and well maintained as well.
Lease Payment Structure
You can structure the agreement in several ways. Your payments can be on a seasonal schedule in case you are a part of seasonal market. Your payments can be high in the summer. The frequency of use can also be the basis of the lease payment structure.
New or Used Equipment
Again, the decision depends on the budget and needs of your golf course. However, there are other things to consider as well. New equipment delivers better efficiency of operation and has a better resale value.
If you are leasing a used equipment that is holding its current value, an authorized manufacturer or distributor can provide you with some options.
Always review the cost and long-term gains before purchasing or leasing golf course maintenance equipment.