Spiel Associates Inc. of Long Island City, NY, has been a distributor of new and pre-owned bindery equipment since 1963. Co-owner David Spiel has been active in the industry since 1993, and his blog, David’s Spiel, offers a vendor’s perspective on industry issues (as well as personal reflections on events of the day). We have David’s permission to reprint the following post about the continuing difficulty that printers are having when they go in search of financing for equipment acquisition. “I sold a used punching machine to a customer of mine, or did I? We agreed on a price of $45,000 for a used Lhermite EX-380 with a few dies, some modifications, and installation. My customer sent off his first and last payment to the leasing company. The leasing company sent me forms to fill out, which I dutifully did. I included a picture of the reconditioned machine. My customer’s lease was turned down, not because he didn’t have the credit but because it was a used machine. “My customer told me that he could not get a lease on a used machine from any of the leasing companies he normally deals with. Does this make sense? This machine is worth $45,000. In a few years it will be worth somewhat less. My customer had asked me to quote him on a new punch with all the accessories and the price came out to be $65,000. Should he purchase a new machine, what will it be worth in a few years, $50,000, $45,000? The depreciation is much greater on new equipment. “So at a time when businesses are strapped and turning to more used equipment, the leasing companies are turning them down. Nice, huh? It seems that the leasing companies are even more cowardly than the banks—not to mention foolish. “Are you having trouble getting a lease? Call me up. I’ll sell you the machine AND lease it to you.”
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