Lease negotiations on used embroidery machine

jt72978 · May 3rd, 2013, 12:16 PM

I was hoping some of you could give me some guidance on negotiating a lease on an embroidery machine. The price given to me is decent. Not phenomenal, not horrible. The software that comes with the lease is IDS Lite, which doesn't appear to be the cream of the crop software. It retails for $1500. I'd rather forego that software and have the company throw in a Hoop Master system with Magna Hoops. I've never negotiated a lease so for those of you with experience, can you help me negotiate - give me tips on what's acceptable in this industry, etc? I don't want to offend the sales guy but I also want to make sure I've gotten the best deal I can get. Also, does anyone have an opinion on the IDS Lite software? Thanks!

minimalist · May 3rd, 2013, 12:45 PM

I'd do an outright purchase instead of a lease. I don't know about your state but in Texas you have to pay the sales tax each month on the lease payment and if you are commercial you might end up on the property tax list as well owing on the machine each year. This might not apply if you're just going to do this at home. Also, you need to be real careful about the end of lease terms.

With a purchase you know up front the amount you'll pay for the machine with the principle and interest. The payment shouldn't be that much different but a longer term if the lease isn't a lease-purchase type of agreement. Go to your bank and ask them if they will lend on it and at what rate. Having financing already arranged puts the negotiations on the price and what goes with it on your side of the equation instead of the seller.

I'd pass on the software and the hoopmaster and just get the machine. You'll be able to buy them used at a better price if you'll spend time on ebay, craigslist, or any other site devoted to used embroidery stuff.

Don't even be concerned with offending someone who is selling you something. Keep in mind that you want to be reasonable, however you make the offer. They either accept it or counter offer. If they say no way and wont' work with you, then take your business elsewhere. It isn't the last machine and there are plenty out there.

Robert Young · May 3rd, 2013, 05:48 PM

I agree with Minimalist... if you are solid enough to go into business with a machine then it should not be hard to get a bank or a credit union even to gladly loan you the money even in today's world. If you are not then you probably need to be working for someone else until you are because you probably won't make it. Sorry, but it is usually true.

jt72978 · May 3rd, 2013, 08:32 PM

Thanks guys. I was doing the lease for tax purposes on our existing business. I'll have to talk to our accountant and see if an outright purchase makes more sense. Financing aside. In your experience, are prices of used machines negotiable? Or are they more likely to throw in more accessories like the hoop master, magna hoops etc? Thanks.

embthreads · May 4th, 2013, 08:27 AM

Everything in life is negotiable except death and taxes. LOL but seriously it's true.