Rent a Booth: Leasing a Spraybooth is an Option Detroit Lakes MN

Don't want to spend all that money up front for a new spraybooth? You're not alone. Many shop owners have begun leasing instead of buying.

By Jennifer A. Mintz
7/1/1998

Thinking about a new spraybooth for your body shop? If so, keep in mind that how you pay is just as important as what you buy. Also keep in mind that you don't have to buy.

Several options are available: bank financing, credit lines, cash purchases or leasing. And budgets, accounting methods and revenue projections are all important factors in determining what method of financing is best. Perhaps the most important factor, however, is how the acquisition cost of the equipment (both initial and over time) will impact your shop's working capital base.

Preserving working capital is one of the more prevalent reasons body shops of all sizes utilize leasing to acquire "essential use" equipment, such as lifts, spraybooths, pulling equipment and welders. Leasing permits repayment of the cost of equipment to occur over time - allowing the equipment to generate the revenue necessary for these payments - and keeps working capital (and bank credit lines) available for other business expenses.

Other business advantages can also be realized through leasing, such as:

• Use of equipment. Leasing offers immediate use of the equipment for an agreed-upon low monthly payment rather than a large, upfront cash outlay.
• Reduced risk of technological obsolescence. At the end of the lease term, the lessee is not...