Leasing with Dell

[Duki]

Hey everyone,

So I'm wanting to suggest purchasing new equipment for my firm. We currently buy a new system here and there for employees, but I'm thinking it will be more cost effective to purchase in bulk every 3 years; about 97 computers. I work at an engineering company, which depends on the functioning of computers to opperate.

I was advised by a Dell Rep. to consider leasing the computers. I will post his email:

Caleb,

To further investigate this possibility, perhaps you may want to present
true leasing. With a true lease, you are paying "rent" each month and
expensing the payments each month. The computers are then replaced at
the end of the lease contract. Because Pentree is well established, the
firm qualifies for 0% interest on true leasing for 24 months.

Using the $1679 per system price from my quotes. Each system will bear
a burden each month of $69.1572 and each month there will be sales tax
added to that amount and possibly monthly property taxes to depending
upon the local property tax laws. True leasing is "renting" and if after
24 months, you either enter into a replacement contract and get all new
systems again or pay a "fair market value" for the systems or pay for
another 12 months and then you own the systems.

Right now we have some promotional interest rates that are Negative 5%
for 24 month true leases as laid out above. I will have a lease quote
prepared. The lease quote will provide 24, 30 and 36 month true lease
payments along with $1 final payment leasing where you are using leasing
as financing. It might be worth splitting the monitors off into a $1
out lease or outright just purchasing the monitors and leasing the
actual towers. 19" flat panels are not easy to return at the end of a
lease when the boxes are long ago recycled. Towers are easy since the
replacement tower provides the return box, but flat panels are a pain.

Something to think about...

Given the nature of your business and the ever challenging technology
requirements, true leasing of the core computer system makes lots of
sense to me and I am generally opposed to true leasing EXCEPT in
situations such as yours with the needs you have.

How functional for your 97 high end users are 2-3 year old systems?

Your thoughts?

Sincerely,

(the dell rep)

I want a non-salesman point of veiw here. I've calculated the price he gave us, and it basically sounds like we're renting the computers for 24 months for the same price as buying them and getting to keep them every 3 years. Why would I benefit from leasing computer equipment rather than just purchasing new systems every 3 years?

[Duki]

bump*

[Barefootsanders]

IMO, I wouldn't buy a dell if someone gave me a million dollars. Everytime you have a problem with it you have to ship it over to India and then they hold it hostage untill you pay them shipping costs, even if you dont want them to fix it. It's crazy. Seriously, I'd by a bunch of emachines, real cheap, you can do what you want with them, and then just hire a computer network guy to set everything up for you, its not hard.

Hope I could help.

[Duki]

It's different with dell's bussiness programs. The warranty service is superb, and if we have to call for tech support, I'm not on hold usually for more than 10 minutes.

I am the network guy, so that wouldn't be an issue really.

Thanks though!

[tgreer]

I've had generally good experience with Dell equipment, in multiple companies, for high-end server equipment.

One factor to weigh is the cost of disposal: you may think owning 97 "older" computers to be an asset, but it is just the opposite. Ridding yourself of them is a major issue.

I suggest you seriously consider leasing your systems.

[Duki]

I've had generally good experience with Dell equipment, in multiple companies, for high-end server equipment.

One factor to weigh is the cost of disposal: you may think owning 97 "older" computers to be an asset, but it is just the opposite. Ridding yourself of them is a major issue.

I suggest you seriously consider leasing your systems.

I thought of getting rid of them, and we actually have a TechEd center just down the road that I attended. They were always accepting computers, and they were mostly junk. These are going to be very high end systems, and they would be crazy to not take them.

Thanks though :)
I'm glad I'm finally getting input on this; what other benifits does leasing have? :cool:

[shaunlfletcher]

battling this out myself at my company. The only real resource I can find is the leasing companies themselves and they are quite obviously biased. IS anyone already leasing and can say whether you feel the process is working or not and why?