Whether you’re looking into getting a brand new commercial coffee machine, or you’re planning on finding the best deal for your coffee shop, many people are surprised to find the number of options open to them.
If you are unsure whether to buy, rent or lease a commercial coffee machine, keep reading this guide to find out which option is best suited for you.
Buying a commercial coffee machine
Buying a commercial coffee machine would mean you pay for it in one large lump sum, and then you own the machine.
The advantage of buying a commercial coffee machine outright is that you can choose which make and model you want; you aren’t restricted to certain models that are only available through rental or leasing companies.
Machines will also come with a warranty if you purchase them outright.
How much does it cost to buy a commercial coffee machine?
Commercial coffee machines come in at a variety of different price points, depending on what features and specifications you’re looking for.
There are coffee machines on the relatively cheaper side of the spectrum, such as the Saeco Professional Lirika Coffee Machine. It is reasonably priced and would make a great addition to any salon, office or store.
Other machines, such as the Ascaso Baby T Zero Inox Coffee Machine, are more mid-range for a commercial machine.
Alternatively, you could opt for more expensive machines, but higher quality and standard, such as the La Marzocco GS3 (MP) Coffee Machine. Both of these machines would be great for any small coffee shop or restaurant.
Renting a commercial coffee machine
Renting a coffee machine is one of the most popular options amongst new coffee shop owners. It provides a lot of flexibility, and can allow coffee shop owners to test out different machines before they commit to one.
How does renting a coffee machine work?
Renting is when you pay monthly for the coffee machine, but you don’t actually own it.
The advantage of renting a machine is that you aren’t committed to keeping it and you aren’t required to pay one large lump sum. Maintenance of the machine is also often included with the rental company.
However, you do not have the option to buy the machine once the rental agreement has finished, and it must be returned to the rental company.
How much does it cost to rent a commercial coffee machine?
The amount you pay for your rental coffee machine will vary depending on the make and model of the machine, as well as the type of rental company you choose.
Some coffee machines can be rented for as little as £3 a day, plus VAT, whilst others may cost £10 a week plus VAT. Whether you choose to pay weekly, fortnightly or monthly is up to you.
Although it’s worth noting, some rental companies may have specific terms of payment which means you don’t have a choice how often you pay for your rental.
Leasing a commercial coffee machine
Leasing a commercial coffee machine is another great way to avoid the initial upfront cost, and many independent coffee shop owners prefer this to buying or renting a machine.
How does leasing a coffee machine work?
Leasing a coffee machine is when you pay an upfront deposit and monthly instalments to pay off your machine; at the end of the agreement, when you have finished paying the instalments, the machine is yours to keep.
The benefit about leasing your coffee machine is that because it isn’t an asset owned by you, it is tax-exempt.
However, you may end up paying more overall compared to buying outright, due to the long-term payment plans.
How much does it cost to lease a commercial coffee machine?
Again, like renting, the cost of leasing a coffee machine can depend on the make and model of the machine, as well as the leasing company you choose.
Costs may range from £5 to £30 a week, with the initial lump sum deposit cost which may cost £100 and upwards.
Pros and cons of buying a commercial coffee machine
If you plan on buying a commercial coffee machine, you should be aware of the pros and cons which come with it.
The main benefit of buying your own coffee machine is that you can choose whichever make and model you want. You’re not restricted to the certain machines that rental or leasing companies offer.
Buying a machine also means you can keep it for as long as you want without any extra fees. You can move it to different locations if needed, without any additional paperwork needing to be signed.
You are also able to resell it when you no longer require it anymore, and could potentially make a profit from it.
However, buying a machine does mean you have to pay the one off initial lump sum cost, which can be quite expensive.
A lot of coffee machine manufacturers will also only offer a warranty of 1 year, and if you buy second hand there may be no warranty at all. This can be costly if your machine breaks down and needs to be repaired.
Pros and cons of renting a commercial coffee machine
If you plan on renting a commercial coffee machine, you should be aware of the pros and cons.
When you rent a commercial coffee machine, you will usually receive free servicing and maintenance as part of the rental agreement. This means if the machine breaks down, you won’t have to pay the expensive maintenance costs.
Renting means you can also enjoy the latest models with upgrades, as supplies are usually required to keep up to date with industry standards.
However, renting means the coffee machine is never actually yours. This means at the end of the rental agreement, you will have to sign up to a new agreement with potentially a different machine.
Some companies may also charge a cancellation fee if you wish to end your contract early. You could face a hefty fee for doing so.
Pros and cons of leasing a commercial coffee machine
If you plan on leasing a commercial coffee machine, you should be aware of the pros and cons.
Buying a brand new coffee machine upfront can be incredibly expensive, but leasing it instead can reduce the costs of a brand new model into smaller, manageable payments. These low monthly payments means you can choose the right machine to meet your needs.
Most lease agreements also give you the flexibility to upgrade your coffee machine, which is useful for companies who may be going through growth periods and require bigger machines.
Something to consider is that if your company is just starting up and has not been running for a minimum of 12 months, leasing companies may actually decline you.
This is because the leasing company must be confident that they will receive the monthly payments. The age of your company may be the deciding factor on whether you can lease a machine or not.