Buying Golf Course Maintenance Equipment: New, Used, or Leased?
Maintaining golf course grounds is an exact science and art. For a course to be considered within the standards, there are numerous requirements for everything from the height of the turf to the speed of play that will change between fairways, greens and roughs. Crews must rely on dependable golf course maintenance crews to get the job done right and meet demanding maintenance schedules.
We will examine two important decisions when purchasing the necessary equipment. First, should your machinery be purchased or leased? If you are going to buy, should you buy new tools or used lawn equipment?
buy or lease
Many times people ask this question when looking at a new car, but by outfitting a maintenance fleet with the tools for their trade, the decision becomes much more detailed.
The main advantage of leasing equipment is that a crew never has to work for obsolescence. When the lease terms end, the latest equipment can be renewed on a contract. Crews will have access to the latest machinery and technology without having to worry about outdated models. However, there are many basic pieces of machinery that don’t really change over time. A lawn mower or earth mover isn’t going to drastically advance beyond perhaps a few extra conveniences.
Therefore, buying the most equipment is the best option in many cases. Although the loan payments can sometimes be higher than the lease payments, at the end of the loan period, the equipment remains on the golf course. Well-maintained mowers and tractors will last a long time and provide many years of service without having to worry about monthly payments. In the end, this offers better financial flexibility, as a crew will only pay expenses when using the equipment, rather than making payments even if the equipment is not used.
Just like buying a home instead of renting it out, with each passing year, owned assets are worth more and more compared to entering into new leases or rentals.
New or used lawn equipment
That being said, golf course maintenance equipment can be an expensive investment. Without a lot of free capital, most people will end up taking out a loan to buy new machines. Still, the latest models offer the peace of mind that the machines will start and should not have any problems for many years to come. However, there are other options.
Obviously, used lawn equipment has the advantage of being less expensive than a new model. Being able to buy a tractor outright will save on interest payments. While repairs and maintenance can be more of a hassle when using lawn equipment, the monthly savings will more than make up for that expense. Most large mowers and machines are very well made and will last a long time, even if bought used.
Ultimately, these decisions are about the long term. While leasing is attractive for short-term decision makers and smaller businesses that are strapped for cash, purchasing the necessary tools will always pay off in the long run.