FMV Lease, the best option when purchasing digital press?

[iprint4u]

I have decided to purchase a Konica KM 8000, for all intents and purposes this is my first purchase of this type of equipment. I have been advised that a "Fair Market Value" lease is the best method for this type of equipment purchase? Over the past several years, when buying "IRON" I was not a fan of this type of a lease, or any lease for that matter, when possible I avoided leasing all together and when I have needed a lease, I have chosen a dollar buyout.

It has been suggested that I do not look at the Digital press purchase as something I will ever want to own, but rather trade in three or four years down the road. Is it true that owning a digital press is not a good idea, better to lease for as little as possible monthly and move forward in three years as the equipment will be worn out and out dated by this time.

Is this standard operating procedures with what I would consider plastic vs. metal purchase or am I just missing something here. The purchase price is roughly 175K, monthly payment about 3.6. I have done the math, again and again, just with my current offset volume, the click charges, lease payment, and consumables, I can do far better monthly than I do with my sheet fed currently, the purchase makes total sense, I don't see how I cannot make the purchase, but the logic is different than anything I have bought previously. Am I missing something???

 

[gordo]

The general rule is:
If it appreciates in value... Buy it.
If it depreciates in value... Lease it.
Check with your accountant to see the tax/write-off differences.

Best, gordo

 

[Craig]

I will guarantee that before the lease is up you will be in a different product. Either the cost will come down enough that re-leasing a new box will cut your expenses (it did for me by about $1200/month) or you have run the machine until it is a service nightmare and you would be stupid to buy it. Either way you are NOT buying a PRESS that will last for 10, 20 even 30 years. These boxes have a useful life that is just about as longs as the lease they offer you.

I'm not a fan of the phrase "digital press" there is nothing press like about them. Production copier, or production printer is a better choice.

 

[iprint4u]

Just when I got past aggravating the sales guys off calling it a copy machine, now someone gives me an alternative, 36 years years in offset pinting makes it difficult for me to call anything that does not run 10K and hour and is made out of plastic a press

Thank you for your comments, I like production printer, sounds good.

 

[KopyBoss]

Like Craig said the technology changes so fast and if you run it into the ground by the time the lease is up it would be a service nightmare. Also you can use the 175k for other equipment. We have never reached the end of our lease on the so called digital presses once they have you as a customer they will offer you the upgrade when the new boxes come out.