RE:RE:Leasing Dude, if you paid that much, you got ripped off. I was looking to upgrade my rental, never have to pay for any repairs, and the price was $30 per month for something like 20 years. Asked for a quote to buy installed and it was 1,600. A big company is not gonna get ripped off by a small company. PYR also knows exactly how much they make on a sale amd it is more certain. And they shouldnt need a lease to ensure recurring cashflow as if to suggest that they would blow the cash if they got it all quickly through a sale PYR needs to give more details before anyone can say good or bad . But of course, if clients dont want to buy outright, then it is good to make any business transaction....that has a profit margin.
PteRoy wrote: When I was younger I leased my hot water heater. I couldnt afford the purchase price outright, plus I would need to purchase a warranty on top of that or pay out of pocket for all my repairs. I couldn't afford either of those options at the time. So what I did was, I leased the hot water heater from the company for $129 a month which included free service and discounted repair if anything broke. I lived in that house for just over 4 years using and leasing that same product. A new product then came out which was even better, the company called me and asked if I wanted to switch the product for the new one and keep the same monthly lease payment. I said yes of course and when I sold that house the next buyer then took over the lease. That company made more money in the long run leasing me that hot water heater then if I had bought it outright. Think of all the other customers who were also leasing their hot water heaters from them. Every month they knew exactly how much money they would make because of their leases. There was no "We need to sell this many units this month to make a profit" Every month there was a steady stream of income. Sounds pretty good to me.
RESTandRelax wrote: hope someone can explain why leasing is a bad thing,
Peter mentions a leasing company which is who would be handing over the money to PYR . the client would be on the hook for paying the leasing costs back to the leasing company .
PYR gets the money up front.
This type of transacation would probably be off balance sheet so the it doesnt affect the clients ability to secure more financing.
so it seems to me everyone wins.
what is wrong with the approach ?