DJGold

BillESC

A recent poster (on another chat board) was looking for an impressive system with a 3K budget that he pushed to 4K. Now, there a lot of combinations that could be suggested for such a request, some better than others but for the most part simply run of the mill in terms of quality sound reproduction.

High quality audio reproduction costs money plain and simple.

The fallacy of the posters quest was two fold.

1. He had a limited budget

2. He had no reserve capital should a component fail.

That's why I suggested leasing to own. For those not familiar with leasing, it is very much like a bank loan with a few advantages.

A. It increases your purchasing power.

B. It minimizes your out of pocket expense.

C. It allows you earn interest on the capital you would have otherwise layed out to purchase the gear.

D. Since in effect you are 'renting' the equipment for a specified term, most if not all of your payments are a tax deductable expense (business structure dependent.)

E. You can select the term of the lease from 12 to 60 months which allows you to have a comfortable monthly payment.

F. Leasing companies can taylor payment programs if your business is seasonal or allow you to skip a month.

G. Pre-payment is not a problem.

H. At the end of the term, the leasing company invoices you for $ 1.00 which allows you to purchase the "used" gear from the leasing company.

Other advantages are obvious. You can step up to bigger events without having to rent, borrow or piece mismatched components. You can charge more. You can have confidence that your system can "do the job."

Leasing is a tool, nothing more and nothing less. Many of our clients take advantage of this tool to elevate their business to a new level while spreading the payments over a reasonable term. The point is, you don't have to be limited in your ability to expand by the balance in your savings account. There are tools available.

Remember . . .

You shouldn't have to pay for your gear . . . it should pay for itself.

djmc · Posted: Fri Jun 27, 2008 11:45 am Post subject:

In this economy, someone COULD put together a very good system for under $4 k.

You just have to be a good shopper like me!

Lots of closeouts & bargains on the net right now....

CJ Greiner · Posted: Sat Jun 28, 2008 9:22 am Post subject:

Over the past couple of years, I've purchased some very expensive equipment (for a DJ...)

... and it's definitely paid for itself.

Lighter, more powerful, more impressive.

And, the lighter equipment is a true back-saver.
_____________

If you can't pay cash outright, I'd definitely recommend considering leasing.
You'll be able to the get the right equipment the first time, and be able to use it right away for better-paying, bigger events.

dokai · Posted: Mon Jun 30, 2008 8:51 pm Post subject:

CJ Greiner wrote: You'll be able to the get the right equipment the first time, and be able to use it right away for better-paying, bigger events.

That's something few people consider: the cost of using substandard gear. It locks you out of the nicer, more lucrative events, and the depreciation of your "inexpensive" equipment costs you much more when you "trade up" than it would if you just bought the more expensive pieces up front. Additionally, the more expensive gear should (I said SHOULD) need to be replaced or repaired less frequently. And consider the true cost of the damage done to your reputation when the inexpensive gear breaks down.

Like they say, "Buy once - cry once."

djsarge · Joined: July 1st, 2008 Posts: 11

So how much to lease some Bose sticks? :D

BillESC · Posted: Wed Jul 02, 2008 7:40 am Post subject:

Assuming you go with two sticks and four subs, the package runs 6K.

A two year lease would run under $ 300.00 a month while a four years lease would be around $ 170.00 a month.

MusicMachine · Joined: June 27th, 2008 Posts: 11 Location: Blountville, TN

A small footnote about leasing. At one time I owned an interest in a leasing company. The rules about leasing v. financing and the amounts you can deduct depend on if the lease is a "true" lease or just financing. The differences can be subtle, but the "true" lease, of which 100% of the payment can be deducted from your income, must have a "Fair Market Value Purchase Option" at the end. This means that you would need to pay an amount roughly equal to the value of the used equipment, less depreciation, at the end of the lease term to actually own the equipment. Some leasing companies will finance this amount for you. The upside is that a true FMV lease may have far lower payments through the term. If the lease has a $1.00 buyout then only the interest paid can be deducted and you cannot claim depreciation until after the end of the lease. (Check with your own financial advisor for full details and recommendations.) Usually leasing requires much better credit than financing too! If you purchase for cash or conventional financing, you can take the IRS deduction for depreciation a couple of different ways.