Is the trend for some retailers to offer very expensive finance to “valued” customers, good advice or not? If you are desperate for equipment then there is a price to pay.
CHOICE found consumers who opt for a lease or rental agreement may end up paying much more than the value of the item. In some cases double.
A recent example is a piece of equipment that you could buy upfront for $1839, also being offered for sale at $3276 (give or take) when you rent it back from a well know flexible rent company. That’s $1437 more! Or, in rough figures, a reducing (LOL) interest rate nearing 47%.
Is this finance charge better off in your pocket or theirs? Sure you get a tax deduction but spending a $1 to get 30c back isn’t much fun. And, you have to be running a profitable business in the first place to get the deduction.
My question to anyone considering these schemes is to ask, “How profitable do you need to be to buy a $1839 piece of equipment.”
The business (and pleasure) of photography is a business with dollar values attached. Please seek professional advice before committing to paying upwards of double for an item in exchange for the ball and chain of these types of finance deals.
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My interest in photography goes back as far, if not further, than I can remember. My Grandfather had a thing called a box brownie and i remember being amazed at how it recorded history. I was given a 120 film camera when I was about 10 as evidenced by some black and white photos I recently found of my sister when she was 5 or so - she turned 40 in 2008.
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Photography. "For the thrill of it."
Photography. "It's where life is happening."
Photography. "When time stands still."
Photography. "Maybe it's just about being there again." 
Personally, I’m as finance averse in my professional life as I am in my private life – finance is all too easy to take out, and far, far too costly in the long run.
If I can’t pay cash, I won’t buy it – it’s that simple.
Good on ya Orson, I am a credit hater myself.
I am a frequent credit-card user, it’s paid off on the due-date, without the criminal interests of around 19% attached otherwise.
If people can’t do that, they should not have a credit card.
Easy said, or written, I know. Why? Because there are too many people out there with an IQ of a Shrimp.
If you hate the banks, don’t give it to them.
However, with the difference when it comes to purchases where the type of cash we are talking about is not sitting, freely available, in the bank-account – that might be an office building, vehicles, machinery, etc.
As a rule, if you are someone running a business and can’t afford 1800 bucks for whatever it is, you should get out of what you are doing, because you are not making any money.
Leasing low cost equipment is just pathetic. Also with tax-benefit it does not make sense.
Happy Days, Axel