Top Restaurant Ice Machines for Rent

Should You Lease Or Buy Your Commercial Ice Machine?

Today, we will explore a topic that may confuse you: Should you buy a commercial ice machine with cash, or is leasing better? Let's break this down with a real-world example of a Hoshizaki ice machine.

Leasing a Commercial Ice Machine: The Numbers

Leasing an under-counter ice machine with a self-contained bin costs $160 per month. This machine makes 50 to 400 pounds of ice each day. Modular ice machines work with bins and dispensers, generating between 200 and 2600 pounds daily, start at $199 per month.

With that lease, you're not just getting the machine. You get: Top of the line ice machines, bins, dispensers. Shipping, delivery, and installation. All repairs, including, parts and labor. Deep cleaning, sanitizing, and preventive maintenance, including water filter changes, twice a year. The most experienced and well-trained technicians in the industry. Customer service 7 days a week. That's right—we'll pop by every six months to descale, sanitize, and ensure everything's running smoothly. We'll even change the filtration system to keep it in top shape.

Now, let's do the math on a under-counter ice machine. Over 12 months, that's around $1920. But here's the kicker: This lease includes service that many forget about when they buy their machines outright. Forgetting to change that filter? It could lead to costly damage sooner than you'd expect.

Buying a Commercial Ice Machine: The Costs

On the flip side, purchasing that same Hoshizaki machine will cost you approximately $7000 upfront. Add in installation costs—which average about $700—and you're looking at an initial expense of $7,700 before even starting business. That's a hefty chunk of change, right?

But wait, there's more. Regular maintenance is crucial. Biannual service can run you around $500 per visit. Over three years, that's an additional $2,700. And don't forget the filters, costing about $135 each, adding up to roughly $810 over the same period.

Comparing the Total Costs

Let's add it all up. Your total expense when buying is around $11,210 compared to $1920 when leasing. That's a pretty significant saving when you lease, not to mention the peace of mind knowing your machine is always in tip-top condition without unexpected service costs.

Opportunity Costs and Business Benefits

Imagine what you could do with that initial $9290 if you chose to lease instead. That's money you could pour into marketing to bring more customers through your doors. Plus, leasing doesn't require any upfront credit, making it an attractive option for many businesses.

We've got over 15 years of experience in the industry, and we've found leasing to be the best option for our customers. It ensures your ice machine is always working, with proper maintenance, saving you significant money in the long run.

Conclusion: Why Leasing Makes Sense

Most ice machine manufacturers reduce their warranty coverage after three years. If you own your machine, you'll be paying out of pocket for any issues—often more than $500 per service call. By leasing, you can rest easy knowing you're covered.

Diving Deeper: Understanding the Financial Implications

When considering the purchase of a commercial ice machine, it's crucial to understand the broader financial implications beyond the immediate costs. By tying up a considerable amount of capital—you may limit your business's ability to respond to unforeseen expenses or opportunities. This capital could be better utilized in other areas of your business, such as enhancing your product offerings, investing in staff training, or improving your establishment's decor.

The decision between leasing and buying also touches on the concept of opportunity cost. Opportunity cost refers to the potential benefits an individual, investor, or business misses out on when choosing one alternative over another. In this context, by purchasing an ice machine, you might be missing out on potential revenue or growth opportunities that the same investment could have yielded elsewhere.

Leasing: A Strategic Business Decision

Leasing can be a strategic business decision, especially for startups or businesses that prioritize maintaining liquidity. By opting for leasing, you preserve your working capital and improve your cash flow management, which can be especially critical during the early stages of business growth. Moreover, leasing payments are often considered operating expenses, providing potential tax benefits as they can be fully deductible against your business's income.

Furthermore, leasing provides businesses with a predictable expense structure. You know exactly what you're paying each month, and there's no need to worry about unexpected repair costs or maintenance issues, as these are typically covered under leasing agreements. This predictability can be a significant advantage, allowing you to budget more effectively and minimize financial surprises.

Technological Advancements and Flexibility

Another key advantage of leasing is the flexibility it offers in keeping up with technological advancements. Ice machine technology, like many other fields, is continually evolving, with new models offering better efficiency, greater capacity, and enhanced features. By leasing your equipment, you maintain the flexibility to upgrade to newer models as they become available, ensuring your business always benefits from the latest technology.

In contrast, purchasing an ice machine means committing to a particular model for the long haul. If a newer, more efficient model is released shortly after your purchase, you might find yourself stuck with older technology, potentially missing out on cost-saving efficiencies and improved functionality.

Risk Management and Peace of Mind

Leasing also helps mitigate the risks associated with equipment ownership. When you own an ice machine, any malfunction or breakdown becomes your responsibility, both in terms of handling the logistics of repairs and bearing the financial burden. However, with leasing, these risks are transferred to the leasing company, which typically covers repair and maintenance costs as part of the lease agreement.

This arrangement not only reduces financial risk but also provides peace of mind. Knowing that any operational hiccups will be swiftly and professionally handled allows you to focus more on running your business and less on equipment hassles. This can be particularly valuable during peak business periods when any equipment downtime could significantly impact your operations and customer satisfaction.

Leasing: A Sustainable Choice

From an environmental perspective, leasing can also be a more sustainable choice. Leasing companies often have programs in place to refurbish and recycle equipment at the end of its lease term, reducing waste and promoting a more circular economy. By participating in these programs, your business can contribute to a more sustainable future, aligning with growing consumer expectations for corporate responsibility and environmental stewardship.

Final Thoughts

In conclusion, while purchasing a commercial ice machine may seem appealing due to the potential for outright ownership, leasing offers numerous advantages that often make it the more sensible option for many businesses. From preserving capital and managing risk to benefiting from the latest technology and contributing to sustainability, leasing aligns with strategic business priorities and provides a comprehensive solution that supports long-term success.

If you're considering leasing an ice machine, We are here to assist. With our extensive industry experience and commitment to customer satisfaction, we can tailor a leasing package that meets your specific needs and ensures your business always has the ice it needs to thrive.

Thank you for joining me in this exploration of leasing versus buying a commercial ice machine. I hope this guide has provided valuable insights to help you make an informed decision.

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