Replacing golf course equipment is an important decision for any club. Prices of the equipment are high and the issues are complex. Getting the right equipment requires not only finding the options but also analyzing them wisely.
Golf course maintenance equipment buying decisions are based on budget, needs, and priorities. You have to follow some important tips to help make good choices of equipment like golf mowers along the way.
Leasing vs. Buying Golf Course Equipment
The first thing you should consider is whether to buy the golf course maintenance equipment or lease it. If you purchase the equipment then it’s yours forever but it’s also a big capital expenditure. Leasing will provide you flexibility in its further usage. You can acquire more and better equipment and also payments over several budget periods.
Leasing also allows you to use the golf course maintenance equipment replacement according to your time and need. You just need to replace the equipment at the end of a lease term.
Choose the Lease Type Carefully
The next important thing you need to consider is what type of lease to go with. Two options include market value and a conditional sales contract. Before you decide on one or the other, carefully choose the equipment you’re looking to replace or buy.
The market value lease is the right option for the equipment you use regularly and frequently and then replace it when lease term finishes. You can lease equipment like mowers, golf carts blowers, and utility vehicles. At the end of the lease, you can also purchase the equipment for a fair market. Generally, people choose to replace the equipment and engage in a new lease. In this way, you can gain access to top-of-the-line equipment that will run efficiently. You can also extend the lease at the end of the term.
For longer-term-use of tractors, sprayers and aerification equipment, you can consider another form of lease where ownership transfers to you at the end. At that point, you can also resell it.
Lease Payment Structures
With either type of lease, you can choose the different structures of your agreement. If you’re in a seasonal market, then consider scheduling seasonal payments. This means you will get higher payments in the summer. You can also set payments based on the frequency of use.
Review Your Priorities
The decision mainly depends upon your course’s needs and budget, but there are some other important factors as well. Lease arrangements are for new equipment that provides efficiency and better resale value. However, if the used equipment is currently holding its value then distributors can provide better leasing options.
Ultimately it’s all about your needs. Your current financial situation often impacts this decision. If you are running a golf course from five to seven years old, then lease new equipment for added operational efficiency and consistent quality.
Review Costs and Long-Term Gains
It is important to weigh your options in light of your needs, and it will give you confidence in your end decision. Consider the potential for improvement and your players’ experience, research the costs and leasing options and make the choice that’s right for you. Choose the cost carefully as it should not be too high.
On the Ending Note
Buy or lease on high-quality golf course maintenance equipment after doing proper research. Golf mowers are used for the long-term so you can easily lease them. Make sure that you buy equipment from only a well-recognized and high-quality manufacturer. This will ensure that your equipment will run like new for many years. Plus, it also takes proper care of its maintenance.
