LEASE buy out!

[wberminio]

It's been 5 years and my ShopBot lease with 10% buy out is finally up!
I was told I could negotiate a lower buy out at the end of lease.
Do anyone have any experience?
With this lousy economy I don't have much cash for the buy out, but would love to keep my BOT!
Any thoughts would be appreciated.

[myxpykalix]

I don't have any experience with a lease buy out but i guess it depends on the details. First, you have already paid your monthly payments so i guess what you have to know to make a decision is the what this 10% figure is.

You clearly won't be able to sell it (forgetting about the 10%) and buying a new one for the equivilent of the 10%, if that makes sense.

Frankly a 5 year old one will work just as good as a new one. I would be inclined to say pay the 10%, don't interrupt your workflow and keep what you got.:)

[bleeth]

Erminio:
Up front the broker will always tell you that the buyout can be negotiated. It rarely can and it can get down to playing a little "chicken" with them.
Since there is such a good market for used bots (and the leasors know this) you may have to bite the bullet. They may let you "pay off" the buyout. It should also be reduced by your security deposit that you paid up front and they usually overestimate taxes due.

[gene]

they are interested in making money, not woodworking, see if you can arrange payments on the buyout , without a doubt a 5 year old machine is worth 10% buyout unless it has been mistreated badly

[michael_schwartz]

Its also your machine, and its setup. You probably don't want to go through the process of setting up another machine and working out the kinks.

They are in the business of providing financing. See what you can work out with them.

[cip]

I just went through a lease buyout on another piece of equipment. Negotiate with a lease company is like asking the two sides of congress to agree, forget it.

You also need to consider the cost of returning the machine if you decide not to keep it. Any lease that I have ever seen requires you to ship the equipment, at your expense, to a location of their choice.

[wberminio]

Thanks all!

I should be speaking to them today.I'll let you know the outcome.