General Chat Thread, Anyone had computers through an operating lease before? in General; We were just about to purchase 86 new all in ones for our school when the head has put the ...
27th March 2012, 12:35 PM #1
Anyone had computers through an operating lease before?
We were just about to purchase 86 new all in ones for our school when the head has put the kibosh on it b y asking us to look at operating leases instead.
Our Finance manager has always been against leases but apparently the operating lease makes sense as an academy.
Has anyone lease gone down this route before and if so can you give me any advise?
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27th March 2012, 12:42 PM #2
Leasing will cost you more in the long term - fact.
You should be rolling in cash if you're an academy. I thought that was the whole point?
All-in-one's are great for space, but will always be more expensive. They essentially use notebook components which generally are more expensive than desktop equivalents.
27th March 2012, 12:54 PM #3
Don't let anyone fool you into thinking academies are rolling in cash. That really is not the case.
27th March 2012, 01:18 PM #4
Even with a budget of £45k a year we still get many large projects through operating leases - they work out fine just make sure your SBM/Bursar has a good look over the terms and conditions before.
Side note really but just to echo the above point about All in Ones – we’ve never found them to be as reliable as normal desktop/monitor PCs.
If you are seriously after small form factor though take a look at things like the Zotac Zboxs with AMD Fusion CPUs – I have one with a SSD in and it flys along on everything I throw at it (even with just a 1.6ghz dual core processor). The big bonus comes in they come with a VESA mount and as such can be put on the back of a monitor in a very neat and tidy way.
The Novatech nBox is a very simlar example that can do VESA as well (we will be going with these for our next big deployment).
27th March 2012, 01:22 PM #5
In a previous school we operated both leases and asset purchase loans to get round quick expansion and rapid change of requirements (and also because my predecessor had been stopped from spending almost anything!)
Leases only work out if you have an established refresh program and the lease period fits into that window. You also have to take into account how you deal with damage and wear'n'tear as some lease firms will hammer you for that when returning equipment. If the lease is shorter than 4 years then you have to look at whether the end of lease purchase is an option and whether the cost works out more than the total cost for an outright purchase (pretty much a given) or from getting a loan to cover costs.
The lease arrangement can have benefits around short term leases (is you only need a small number of machines for a set project of limited life) and also around evaluation of technology / pilots, but the cost is usually higher for these. Too many lease arrangements are permanent arrangements or are long-term arrangements with limitations on what notice periods you can give. The other benefits can be around support, warranty, frequent refresh of technology (e.g. every 3 years), insurance and so on.
Always be aware that the lease on the kit is a pressure on your budget and should the worst happen you might find that you have to cough up the remaining cash for the life of the lease ... so you have to know a) how long that is, b) what the costs is and c) when you might have to pay it. Also be aware that the insurance might have to be different to the school's normal insurance and this might be wrapped up in the cost. Have a chat with your insurers about this aspect.
If this is merely a way of deferring payment on kit or spreading it over a few years then a loan might be the best option with the kit used as collateral, in a similar manner to HP on a car ... or a simple loan on the assets / reputation of the school.
Personally ... as soon as I could move onto a regular replacement plan which was sustainable we did ... as the risk against the school was not something we were happy with.
Thanks to GrumbleDook from:
reggiep (27th March 2012)
27th March 2012, 02:06 PM #6
Hi Grumbledook, Could I ask you to clarify this bit...
Do you mean you went away from leasing to a fixed replacement plan or that you went to leasing?
Originally Posted by GrumbleDook
27th March 2012, 02:41 PM #7
We went from a small leasing scheme (needed due to rapid expansion covering 2 rooms of 30 machines and were unsure about the length of the project) to a decent fixed replacement plan for the newly expanded rooms.
We also separated the provider of the equipment and the leasing agent as this was best value at the time, but when we looked at alternative options 2 years later we found that tying the two together was working out best (as the market changed around) ... but instead we used an asset purchase loan for some equipment instead (security and storage hardware) ... this meant the funds we previously needed for the security kit could instead be put into the fixed replacement program for desktops instead.
Thanks to GrumbleDook from:
reggiep (27th March 2012)
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