ATM Lease Benefits

Before determining whether an ATM lease or an ATM purchase would be your best option as an additional source of income, you should be sure to carefully weigh the pros and cons of both ATM leasing and buying. You may just find that leasing an ATM is a better option for the particular needs of your business.

There are a number of factors to consider. What kind of service agreement will you have if you choose to purchase your ATM? Will you be responsible for repairs? Does the ATM machine come with a warranty? Where is the closest service repair person?

If you purchase your ATM, you may be responsible for all future repairs. There is usually a warranty period on at least part of the machine, but never take those kinds of things for granted. Make sure you understand your agreement!

ATM Lease Agreement

If you choose an ATM lease, on the other hand, make sure you fully understand the lease agreement before you sign off on it. You may receive more assistance with repairs if you lease the ATM, but read your contract carefully. Are there charges for late lease payments? If the machine does not perform well, what options will you have available? Is there a clause in the agreement that will allow you to opt out if necessary?

Be sure to look at the total price before you get too excited about a low monthly price on a lease agreement. For example, if you can purchase an ATM machine for $10,000, and the lease option is $1000/mo, then the machine would cost you an additional $2000 in the first year alone. That $1000/mo will then continue the following year. So, while $1000 a month certainly sounds nicer than $10,000, the lease will cost your more over the long haul. Leases vary, however, so you should evaluate your options carefully.

Your accountant can help you to determine which option would offer a better deduction for your business. Do you need a monthly payment to claim as a business expense for your taxes next year? How much of the monthly lease payment can you deduct? Can you deduct more if you buy it outright? Your accountant can tell you if it is more beneficial for you to buy or lease an ATM machine and will also be able to outline a few more pros and cons related to ATMs as business expenses.

Take a little time to investigate your options before you choose to either buy or lease an ATM machine. Making an educated decision now will mean you will likely be more satisfied with your choice months down the road. Don't let a sales rep rush you into a decision. Remember, it's his or her job to sell. Insist on taking your time, asking questions, reading information and talking with other customers about their experiences with the company from which you are considering either leasing or buying.