Having a new commercial freezer is similar to owning a new house: you can either rent or lease it. It can be the one of the biggest purchases that you can make for your business. Although paying cash has a lot of benefits you can enjoy, you can still negotiate a better sale with renting or leasing. Now you have better alternatives on financing for your commercial freezer if you don’t have the cash outright.
Before I get ahead of myself, renting a freezer means paying regularly on an assigned schedule of payment (either monthly, quarterly, etc.). It also means that you constantly have to plan how to allocate enough budget to pay for the bill.
On the other hand, leasing is very similar to renting, only that you’re renting to own it eventually. The customer gives an initial payment and agrees on the terms of payment set by a dealer or broker.
Advantages
Here are the benefits you get from leasing and renting:
- As what I have said, you can have a unit even if you don’t have the complete cash. You don’t have to settle for low quality equipment just because your on-hand cash doesn’t cover the cost.
- The units will be under warranty the whole time. It also comes with maintenance packages. If there’s any problem with the freezer, it can easily be covered.
- You don’t have to worry how to dispose your unit when a better one comes out on the market –just call your dealer and cut the contract. A word of advice is that you must also conform to the terms of how you can end the contract so you don’t label yourself a bad customer.
- There are no surprises –the payments are fixed, based on the contract. You’re not required to pay for the whole depreciation cost.
Drawbacks
- If you fail to pay on the agreed schedule, the owner may reclaim the unit.
- For those who are not good in monthly budgets, this is not a very suggestible option for you.
- You have to pay for penalties if you fail to pay on time.
- Every time you cut a contract, you’re unit is reclaimed –meaning you’ll never going to have your own unit.
How to rent/lease?
Although renting or leasing a new commercial freezer is less complicated than buying a new one, to get the best deal you have to know how it works.
Step 1. Choose what kind of freezer do you need. A display freezer? Undercounter? Glass top?
Step 2. Pick your models and get a list of freezer types in your price range.
Step 3. Test the unit. Pay a close attention to comfort, internal noise, and temperature.
Step 4. Ask about safety. See all the valuable safety features available for the unit.
Step 5. Compare lease/rent deals. Don’t just settle on your first visit. Look for other deals and calculate the lease deals at home.
Step 6. Say the price first. After deciding where to rent/lease, you can now return to the dealer and strike the deal first.
Step 7. Negotiate for the final deal.
Whichever you choose between leasing or renting, you’ll choose try not to fall on the dealer’s gab. Your dealer may try to push more deals with a nice chitchat ad. This will be added to the amount you’ll pay monthly. Always remember to sign a contract before handing any payment.
