Coffee Machine Rental Options: Renting vs Leasing vs Buying
There are a number of stages involved in looking for a coffee machine. Stage one often starts with the curation of the long list of coffee systems out there. Deciding on the right coffee system means comparing capsule coffee vs. bean coffee vs. instant coffee vs. liquid coffee. Once you have settled on the right system for you, the next step involves choosing the right machine within that particular coffee system. Do you choose a Nespresso or a Dulce Gusto or do you opt for a Jura or a Delonghi. Once this step is complete the last thing to do is to decide whether you want to buy, rent or lease your coffee machine. In this article we will try highlight all the pros and cons of each one of these options.
What do all these terms mean?
Coffee Machine Rental Explanation:
Renting a coffee machine, typically means you pay the company, from whom you are renting, a set monthly rental for the use of the coffee machine. The coffee machine in a rental system typically never belongs to you (rent-to-own options are different to straight forward rentals and we will discuss this further in the leasing section)
Coffee Machine Lease Explanation:
A coffee machine lease, is similar to a coffee machine rental with the main difference being that at the end of the predetermined period, you typically own the machine. A coffee machine lease can also be called a rent-to-own agreement or an extended purchase period. Because of high interest rates , leasing coffee machines are fairly uncommon in South Africa, with most companies opting to rent instead. A coffee machine lease also typically does not come with a free maintenance plan like a rental does.
Buying Explanation:
Buying is the simplest of all. Buying means you own the coffee machine from day one however your guarantee is usually limited to one year.
Service Differences of all Options:
Coffee Machine Rental Service:
Within a coffee machine rental, the company from whom you rent the coffee machine from, will maintain and service the coffee machine for you usually at no cost. In most cases the company will also provide a next day swop out service should your machine not be repairable on site.
Coffee Machine Lease Service:
A coffee machine lease arrangement, usually comes with the same guarantee which a purchase comes with (commonly 1 year but in some instances 2 years). The service you receive when leasing is slightly different to purchasing, due to the fact that a lease often comes with a preset monthly amount which you can add to the leasing amount which will effectively give you the same service which you would receive in a rental, albeit at a cost.
Coffee Machine Purchase Service:
Like most appliance guarantees, 95% of all coffee machine guarantees in South Africa are 1 year Guarantees.
Costs Comparison:
Rental Costs:
Coffee Machine rental costs are usually the highest of all three options but usually the most flexible. Coffee machine rentals are typically 10-20% higher than leasing prices but the term of the rental is usually 1 year whereas the leasing term is usually 3 years.
Leasing Costs:
Leasing is a cheaper option than renting but comes with greater commitment. When you lease a coffee machine, you are effectively buying that coffee machine over a longer period. The costs of leasing over the entire term compared to the cost pf purchasing once-off, usually results in you paying 30% more than if you bought the machine for cash.
Purchase Costs:
When purchasing a coffee machine, you are stuck with the coffee machine for life, which may or may not be a good thing. If your coffee machine will be in a high traffic environment and will likely require a lot of servicing then one should factor 20% of the machine value as an annual coffee machine servicing cost.
Conclusion:
Deciding which of the three options to choose when you have decided on a coffee machine depends entirely on your circumstances and the environment in which the machine will be. At the end of the day, each option has its own merit and own disadvantage. Please contact us if you require advice on which option to choose. We will point you in the right direction even if we don’t offer a particular option for the machine which you are looking for.