Leasing equipment

[Adrian Fischer]

Does anyone out there lease camera equipment? Im in the market for a new body or two (from DX to FX) (and maybe some lenses as well) and rather than fork out a large chunk I was wondering if leasing might be a better option to manage cashflow? Thoughts? Any references to who does this type of leasing would be appreciated as well.

[Puzz1e]

Very interesting question. I haven't heard of any places but will certainly keep an eye on other replies. I would assume that leasing in Australia would be ridiculously over priced (as always)

[ricktas]

If this is for business, talk to your accountant, you can probably find someone through your accountant who does general business leasing that will take photography gear on. I doubt there is a specific company for photography gear leasing.

[JM Tran]

there is a guy/business in melb that hires out camera equipment for overnight, weekly to monthly rates - quite reasonable too. I have used him once and some colleagues have used him a few times. He is a lot stricter now as he was burnt a while ago by someone renting a D3 and a few Nikkor lenses with fake IDs etc.

His name is Ben. http://www.benshire.com.au/

but really, unless you are a full time professional who can write off the monthly expenditure for taxation purposes, than there is no point.

another option is to finance it through the store - which usually goes through a bank anyway and pay it in monthly installments with interest on top.

I'd just apply for a credit card, use that to buy said equipment, and pay it off fast enough that you dont accrue any interest on top of it. Something I do every year or so when I am upgrading or needing specific equipment with monthly credit card repayments.

[Old Skool]

Other option is some stores do deals on interest free for long periods thru GE or similar. I've bought some of my gear thru that sort of thing and paying $100 a month doesn't hurt as long as you pay it all off before the interest free period expires.

[ricktas]

Other option is some stores do deals on interest free for long periods thru GE or similar. I've bought some of my gear thru that sort of thing and paying $100 a month doesn't hurt as long as you pay it all off before the interest free period expires.

When undertaking these deals, please read the fine print. You will often find that if you miss making the payment by the due date (even if you are in front, repayment wise), or do not pay the minimum required amount for one month, that interest starts charging from that point, and the interest is calculated on the total borrowed, not the remaining amount owing. Also often, the minimum amount quoted as the repayment will not pay the total off, within the interest free period, and again if you do not pay it all off in the interest free period, interest is then calculated on the total amount borrowed, not the remaining balance.

So, do take up these offers, but get all the facts first.

[Bennymiata]

There is another thing to look out for when leasing ANY equipment.
That is that the goods are actually owned by the leasing company, and not by you, even though YOU HAVE to insure the goods and make sure they are kept in good condition.

In the case of good photo gear, when the lease expires in 2-3 years or whatever, the leasing company has the right to get you to return the goods to them, so that they can sell it. You don't automatically own the goods at the end of the leasing arrangement, so if the gear you buy is worth say $3K and the payout is only say $500, the leasing company can take back the goods rather than letting you pay them out.
Check out the fine print, as Rick says.
That means they can make a big profit on the gear even though you may have paid them lots of $$$.
I've known people who were caught in that trap, and these days, the finance companies try to make as much profit as possible, so be warned.

If you aren't able to pay for the stuff at the end of the month to take advantage of the free credit you get with some cards, my advice would be to take out a personal loan from your bank or building society, or have the amount you need added to your mortgage, as these are the cheapest interest rates and at the end of the terms, the goods are all yours.

The interest charged on these loans can also be tax deductible, as can the depreciation if you use the goods to make income.

[bricat]

Leasing is an expensive way to own equipment.

[Adrian Fischer]

granted paying cash up front is the cheapest option but laying your hands on 10 or 12K for a camera a lens isnt always that easy. Sure it may cost more in the long run but it frees up money now.

[Bennymiata]

I agree with you Adrian, but the trick is to borrow the money and pay as little as possible for it and to still own the goods outright at the end of the term.

Leasing may sound good in that you have little or no up-front costs and just the one monthly payment, but the interest rates are very high and you could get stung at the end of the term.
The main difference between hire purchase (and personal loans etc) and leasing, is that with leasing, you pay the deposit, AND the interest in borrowing it at the end of the term whereas with HP, you pay a deposit at the beginning and don't pay interest on the deposit, and at the end of the HP agreement, YOU own the goods forever and are free to sell them.

Whatever you do however, NEVER rent goods as you can be paying for them forever and still never own them.
At the end of the rental agreement, you can pack up the goods and return them to the rental company, but if they are not in 100% condition and in the original packing boxes etc, there can be claims made against you and packing it all up and sending it off somewhere is a real hassle.