Are you considering buying a vending machine for your office? If so, you have many different financing options available to you. Whether you choose to buy or lease an office vending machine will depend on your budget, the type of vending machine you need, and other factors.
In this blog post, we will compare the advantages and disadvantages of buying and leasing a vending machine in the UK. Read on to learn more and find out which financing option is best for you. This will help you make an informed decision about which vending machine financing option is best for you and your business.
When it comes to purchasing a vending machine, the first option that should be considered is buying the machine outright. This type of purchase may be appealing to those who have the upfront capital available to make the purchase and do not wish to take out a loan or enter into a lease agreement.
Advantages of Buying an Office Vending Machine
The main advantage of purchasing a vending machine outright is that you will own the asset from day one and be free from any restrictive contractual arrangements. This means you can use the machine in any way you choose, without having to worry about getting approval from a leasing company.
As a finance option for vending machines, buying can often be more cost-effective in the long run as you won’t need to pay interest on the loan or worry about any additional charges from a leasing company.
Disadvantages of Buying an Office Vending Machine
The primary disadvantage of buying a vending machine outright is that it requires upfront capital to purchase. This can be difficult for businesses to come up with, especially those just starting out or looking to expand their operations. Furthermore, since you will own the asset, you will need to cover the cost of all repairs and maintenance.
Statistics show that businesses in the UK are still choosing to purchase assets such as vending machines outright, despite the capital outlay required.
In 2019, approximately 64% of vending machine sales were made outright with no form of financing involved. This shows that businesses are becoming more confident in their ability to fund their purchases and are seeing more value in owning the asset from day one.
Leasing a vending machine is an increasingly popular option for those looking to purchase a vending machine for their office. Rather than purchasing the machine outright, leasing involves entering into a finance agreement which allows you to spread out the cost of the vending machine over several months or years.
Advantages of Leasing an Office Vending Machine
One of the advantages of leasing include not having to commit a large amount of capital upfront, as well as having the flexibility to upgrade your machine should your needs change.
Financing companies have attractive rates that help you split the cost over the duration of the vending contract, meaning that your costs are more easily absorbed than they would be on day one of an outright purchase.
Disadvantages of Leasing an Office Vending Machine
Disadvantages include making payments for the life of the lease, as well as being subject to additional fees and penalties should you miss a payment or default on the agreement.
As with most purchases, business or personal, you will be subject to the terms of the finance agreement until fully paid off, which on vending contracts can be up to seven years.
According to the Finance and Leasing Association, in 2019, nearly £45 billion worth of finance agreements were taken out in the UK alone, with £8.2 billion of that being specifically related to business assets such as office vending machines.
Where to turn for your next vending machine purchase
At Connect Vending, we’ve been installing and operating vending machines around the UK for the last 27 years. We’re proud of our exceptional customer service and our reputation as a leading vending provider.
We’d love to hear from you!