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    Leasing IT equipment - worth it or not

    Scheduled Pinned Locked Moved IT Discussion
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    • DashrenderD
      Dashrender @JaredBusch
      last edited by

      @JaredBusch said:

      @Dashrender said:

      I've never heard of leasing a used car.

      Quite common. A lot of people lease a new car and trade in. Those traded in cars either go to auction or get re-leased.

      which is it? common or not, your example specifically says "people leas a NEW car." Once it's traded it, it's off lease. I've never heard of used cars being available for lease. (I figured because the cost maintenance wouldn't be worth it for either the leasing company or the leasing company would have to pad the cost so much to ensure they were covered, it wouldn't be worth it to the end user).

      The same goes for computers - Leasing a used computer seems counter-intuitive. The cost of maintaining 3-5 year old computers parts wise gets more and more expensive as the machine ages. So the Leasing company will need to build into the lease price the cost of ensuring that the equipment continues to function during the entirety of the lease, right? or do they just pawn that off on the end user?

      scottalanmillerS JaredBuschJ 4 Replies Last reply Reply Quote 0
      • Minion QueenM
        Minion Queen
        last edited by

        We actually have an off lease Vehicle got something with like 20,000 miles for not much money.

        DashrenderD scottalanmillerS 2 Replies Last reply Reply Quote 0
        • DashrenderD
          Dashrender @Minion Queen
          last edited by Dashrender

          @Minion-Queen said:

          We actually have an off lease Vehicle got something with like 20,000 miles for not much money.

          Sure, but it's outside the conversation unless when you acquired that used vehicle, you leased it, and didn't buy it.

          1 Reply Last reply Reply Quote 0
          • scottalanmillerS
            scottalanmiller @Minion Queen
            last edited by

            @Minion-Queen said:

            We actually have an off lease Vehicle got something with like 20,000 miles for not much money.

            That's off lease. We are talking on lease.

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            • scottalanmillerS
              scottalanmiller @Dashrender
              last edited by

              @Dashrender said:

              which is it? common or not, your example specifically says "people leas a NEW car." Once it's traded it, it's off lease. I've never heard of used cars being available for lease

              It would be both on lease and off lease at the same time.

              1 Reply Last reply Reply Quote 0
              • scottalanmillerS
                scottalanmiller @Dashrender
                last edited by

                @Dashrender said:

                The same goes for computers - Leasing a used computer seems counter-intuitive. The cost of maintaining 3-5 year old computers parts wise gets more and more expensive as the machine ages. So the Leasing company will need to build into the lease price the cost of ensuring that the equipment continues to function during the entirety of the lease, right? or do they just pawn that off on the end user?

                Actually it was brilliant. Best value for the customers. The cost of maintaining "old", and we are using the term very loosely here, is not that low because the leasing company was investing in well known, high quality, off lease machines and was able to maintain lots of spares at low cost. The price drop from companies irrationally dumping used machines because they were "old" meant that the prices were way below value. So the leasing was cheaper for the customer than they could possibly do on their own because buying used computers one at a time doesn't carry the same value and the customers lacked the wherewithall to know how to buy effective, used equipment.

                It was financially super obvious if you actually looked at the numbers and how it worked. Anything but counter-intuitive. What it actually showed was how crazy it was to buy new and to overbuy so dramatically like most companies do.

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                • scottalanmillerS
                  scottalanmiller @Dashrender
                  last edited by

                  @Dashrender said:

                  (I figured because the cost maintenance wouldn't be worth it for either the leasing company or the leasing company would have to pad the cost so much to ensure they were covered, it wouldn't be worth it to the end user).

                  I think that you feel that the cost of maintenance of slightly used equipment, cars or computers, is much, much higher than it really is and this is throwing off your perception of value.

                  In a lot of 100 computers, you are unlikely to have to do anything more than replace one full unit (motherboard died) and maybe 15 - 20% of hard drives during a seven to ten year lease cycle. Maybe one stick of memory or something else odd. But very, very little. You build in the cost of the drives and you replace with bulk purchased, well planned out, low cost SSDs that last for effectively forever. Sure, there is some cost there, but very little. When planned accordingly that cost and risk is spread out over many, many machines and the lower cost of bulk buying combined with improved planning allows you to make the entire process predictable and affordable.

                  1 Reply Last reply Reply Quote 0
                  • JaredBuschJ
                    JaredBusch @Dashrender
                    last edited by

                    @Dashrender said:

                    which is it? common or not, your example specifically says "people leas a NEW car." Once it's traded it, it's off lease. I've never heard of used cars being available for lease. (I figured because the cost maintenance wouldn't be worth it for either the leasing company or the leasing company would have to pad the cost so much to ensure they were covered, it wouldn't be worth it to the end user).

                    Common enough. Here is a consumer reports article on the subject.
                    http://www.consumerreports.org/cro/2012/12/used-car-leasing/index.htm

                    I specifically stated that the new car gets traded back in and sometime goes out to auction/sale but other times goes back on lease. Thus used car on lease.

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                    • scottalanmillerS
                      scottalanmiller
                      last edited by

                      I think that you will find that lots of used car dealers will offer leases if you ask. It is just another way for them to monetize.

                      DashrenderD 1 Reply Last reply Reply Quote 0
                      • DashrenderD
                        Dashrender @scottalanmiller
                        last edited by

                        @scottalanmiller said:

                        I think that you will find that lots of used car dealers will offer leases if you ask. It is just another way for them to monetize.

                        I'm not in that market, so I definitely admit ignorance.

                        1 Reply Last reply Reply Quote 0
                        • scottalanmillerS
                          scottalanmiller
                          last edited by

                          I rarely lease because I have crazy complex driving patterns. Although now I am getting closer and closer to simply not owning cars at all.

                          1 Reply Last reply Reply Quote 0
                          • MattSpellerM
                            MattSpeller
                            last edited by

                            Just my $0.02 - if you're in a situation with more than 100 computers to lease, get new ones, roll them every 3 to 4 years.

                            scottalanmillerS 1 Reply Last reply Reply Quote 0
                            • MattSpellerM
                              MattSpeller
                              last edited by

                              Warranty is really up to you and will probably be dictated by your business case. If it's under 100 absolutely avoid warranty. Over 100 and it can save you a lot of running around and headaches, but it'll cost you more money (to a point, don't forget to factor in your time, storing parts, replacing them, etc etc).

                              1 Reply Last reply Reply Quote 0
                              • scottalanmillerS
                                scottalanmiller @MattSpeller
                                last edited by

                                @MattSpeller said:

                                Just my $0.02 - if you're in a situation with more than 100 computers to lease, get new ones, roll them every 3 to 4 years.

                                But is that not based on the assumption that you can get new ones at the right value? What if you, like 90% of businesses, don't have any real value to new but would get better value from used?

                                MattSpellerM 1 Reply Last reply Reply Quote 0
                                • MattSpellerM
                                  MattSpeller @scottalanmiller
                                  last edited by

                                  @scottalanmiller ..... what? You've totally and completely lost me. Used? Seriously? Under what circumstances?

                                  coliverC scottalanmillerS 2 Replies Last reply Reply Quote 0
                                  • coliverC
                                    coliver @MattSpeller
                                    last edited by coliver

                                    @MattSpeller said:

                                    @scottalanmiller ..... what? You've totally and completely lost me. Used? Seriously? Under what circumstances?

                                    That 90% of office workers don't need the flashiest more up-to-date models... most could probably get away with an older pentium and 4 gigs of RAM with an SSD attached it it.

                                    scottalanmillerS 1 Reply Last reply Reply Quote 0
                                    • MattSpellerM
                                      MattSpeller
                                      last edited by

                                      I feel bad re-deploying someone's crust-ified & nasty 2 year old laptop 😞

                                      coliverC scottalanmillerS 2 Replies Last reply Reply Quote 0
                                      • coliverC
                                        coliver @MattSpeller
                                        last edited by

                                        @MattSpeller said:

                                        I feel bad re-deploying someone's crust-ified & nasty 2 year old laptop 😞

                                        Uggh... Laptops are a different matter, at least for me.

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                                        • scottalanmillerS
                                          scottalanmiller @MattSpeller
                                          last edited by

                                          @MattSpeller said:

                                          @scottalanmiller ..... what? You've totally and completely lost me. Used? Seriously? Under what circumstances?

                                          Most. Why would you buy new? The premium that you pay is incredible and what benefits do you get? It isn't like desktops wear out like a car. What do you perceive as the value for new that makes it worth at least four times the price of used?

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                                          • scottalanmillerS
                                            scottalanmiller @coliver
                                            last edited by

                                            @coliver said:

                                            @MattSpeller said:

                                            @scottalanmiller ..... what? You've totally and completely lost me. Used? Seriously? Under what circumstances?

                                            That 90% of office workers don't need the flashiest more up-to-date models... most could probably get away with an older pentium and 4 gigs of RAM with an SSD attached it it.

                                            What is amazing is how it seems half of all businesses only deploy new and don't realize that no one needs that. And the other half, in the SMB at least, feel that employees are worthless and won't give them basic tools to do their jobs. So Pentium 4s running Windows XP and 512MB were still to be found last year!!

                                            Buying used is somewhere in the middle. Get better value for everyone, don't waste a fortune on people who don't need it but having good machines for everyone that you feel is worth employing.

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