Vehicles

Car Wash Equipment: Should You Lease Or Buy?

Posted on September 1, 2008 by - Also by this author

 There are various advantages to both methods. Certainly the amount of the equipment should be a deciding factor. The fact that the life expectancy of all types shown is 10 years or longer will affect your decision, as this is a long-term, capital investment purchase.

 

CASH PURCHASE

Most operators cannot afford an $8,000 to $35,000 investment in one payment. Since this purchase may involve the installation of plumbing drains, electricity, and perhaps even a structure to house the car wash system, financing or leasing is probably the preferred method for this type of purchase.

 

FINANCING

Most dealers will offer financing through a third party. You may want to contact your bank for a capital improvement loan since most car wash equipment will be a permanent installation that will increase the value of your property and be an investment in your livery service. Expect to make a minimum down payment of 10% to 20% of the total. After paying off a five-year loan, in most cases you still have an estimated six years of useful life. The cost of the equipment is depreciated on your taxes over a 10-year period, but the interest on your financing may be deductible if you set this up as a property/building loan.

 

LEASING

Monthly lease payments at E-Lease would cost about $660 on a $31,000 system. You would pay first and last month payments instead of a down payment so your total cash outlay is $1,320. All payments are tax deductible and there is no liability on your balance sheet for this purchase. At the end of the 60-month lease, you pay $1 and you own it.

 

 

View comments or post a comment on this story. (1 Comment)

Previous

Compressor Delay

More News

Turtle Top Minibus Shuttle Retains Immaculate Status

Vehicle Pick of the Week: If you’re in the market for a used vehicle that’s been treated right, this Ford F-550 is a candidate.

Mercedes-Benz S-Class Thinks Smarter, Not Harder

Vehicle Review: The new version can self park, slow down automatically, and avoid crashes better than ever.

Cadillac CT6 Has Clever Surveillance Feature

Vehicle Review: Owners can use four of the vehicle's cameras as a built-in security system.

Chauffeurs Choice: Jaguar XJL Versus Audi A8L

Many find it difficult to decide between the two due to their cutting-edge styling and attractive chauffeur programs on offer.

1977 Town Car Was Largest Car On Domestic Market

The sales brochure sums it up: “Words can only suggest what the Lincoln Continental is. To really own this car, you have to drive it."

See More News

Facebook Comments ()

Comments (1)

Post a Comment

Submit

Blog

See More

LCT Store

LCT Magazine - March 2017 $12.95 INT'L LCT SHOW ISSUE COVER STORY: * Innovate or Die: Show To Be a Business "Disrupter" * *



Connect

Experience the three annual industry events for networking for business, showcasing vehicles and products, and getting the tools for success.

Read About Your Region

What’s Happening Near You?
Click on any state to see the latest industry news and events in that region.

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Metro Magazine

Serving the bus and passenger rail industries for more than a century

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

Please sign in or register to .    Close