We lease ice machines for a living, so you’d expect us to say leasing is always the better deal. It isn’t. For some businesses buying makes more sense, and we’d rather you figure that out now than resent a lease two years in.
Here’s how we’d think it through if we were in your shoes.
The case for buying
If you have the cash, a staff member who’s handy with equipment, and you plan to be in the same spot for a long time, owning can work out. You build equity in the machine, you’re not making a monthly payment forever, and you can do what you want with it.
Buying also makes sense if you want to own the machine eventually. We don’t offer lease-to-own, so if that’s the goal, buy.
The case for leasing
Most of the restaurants, bars, hotels and offices we work with lease for one of three reasons.
They don’t want a big up-front cost. Buying means paying for the machine, bin, filter and installation all at once, which is often several thousand dollars. Starting a lease with us means paying the first and last month, usually less than $400 total, with no installation fee.
They don’t want to be in the repair business. This is the big one. An ice machine is a refrigeration system that runs nonstop, and when it breaks it breaks at the worst possible time. A failed compressor or evaporator on a machine you own is a four-figure bill, plus the ice you have to buy by the bag while you wait. On one of our leases, service and repairs from normal use are included.
They don’t want to clean it. Ice machines have to be cleaned and sanitized on the inside on a regular schedule, and a dirty machine is an easy write-up from a health inspector. When you lease from us, the inside of the machine is our responsibility. You keep the outside clean and the area around it free of dust and pests. That’s it.
Questions to ask yourself
- If this machine died on a Saturday in August, who would fix it, and how fast? If you don’t have a good answer, that’s a point for leasing.
- Would I rather keep a few thousand dollars in the bank right now? New businesses almost always say yes.
- Is anyone on my staff going to keep up with internal cleaning? Be honest.
- Is my business going to grow? With a lease you can move to a bigger machine when your lease is up, instead of being stuck with one you’ve outgrown.
- Do I want to own it eventually? If yes, buy.
What about taxes?
Lease payments are generally treated as an operating expense, while a purchased machine is usually depreciated. Which works better for you depends on your situation, so ask your accountant before you decide. It’s a five-minute conversation and it can change the math.
Our honest take
If you’re opening a restaurant, running a bar, or managing a property where downtime costs you money, leasing usually wins on convenience and predictability. If you’re established, cash-comfortable, and have someone who can maintain the machine, buying can be cheaper over a long stretch.
Want to see both sides side by side? Our sister company sells Hoshizaki machines at HoshizakiIceMaker.com, so you can check purchase prices. Then give us a call at (904) 620-9813 and we’ll give you a lease quote on the same machine so you can compare apples to apples.
