To Lease, Or Not To Lease, That Is The Question

Adequate maintenance equipment is a vital part to the success of any golf course. There are a number of different options that clubs can look at when dealing with equipment dealers.

• Option 1 - Buy - This option has a high upfront purchase cost, low short term maintenance costs, and higher long term maintenance costs (as the equipment ages), but no monthly payments. 
• Option 2 - Lease - This option has low upfront costs, low short term maintenance costs, and no long term maintenance costs (as the equipment is returned and new equipment re-leased), but is a fixed on-going yearly cost.
• Option 3 - Lease to Own - This option has low upfront costs with monthly payments and a buyout at the end of the term, low short term maintenance costs, and higher long term maintenance costs as the equipment will eventually be owned. 

So which option is right for our club? Well that really depends on each piece of equipment and what it is used for. Each option has advantages and disadvantages for different situations.We also have to look at the cash flow and financial abilities of the club in the long and short term.

• Owning - This option is good for equipment that will last a long time with relatively minor repairs. Equipment like utility vehicles, topdressers, blowers, reel and bedknife grinding equipment, and lighter duty mowing equipment. Many clubs do not have the financial abilities to purchase most of this equipment upfront, but some have the long term stability to deal with repair and maintenance cost. For these types of equipment the best choice is often a Lease to Own option. 

• Leasing - This options is good for equipment that takes a beating on daily basis such as rough mowers. Equipment that will quickly deteriorate due to heavy and hard use is not something you want to hang onto for years and years. By leasing this type of equipment you avoid the high repair and maintenance costs and cycle through new equipment you can count on. Equipment that undergoes regular technology advancements such as greens mowers and chemical sprayers are also a good to lease. Leasing these types of equipment you can be sure to get the latest and greatest technologies to bring your turf to the next level.

Quinton working on a reel

At the Kamloops Golf and Country Club we have a good fleet of maintenance equipment and one of the best people in the industry to take care of them, Mechanic and Turf Technician, Quinton Haresemchuk. The members at our Club have enjoyed his expertise and service for 25 years, 17 of which he as been a Mechanic.

Last year our Club re-structured some of our equipment leases, returning our walk behind greens mowers (which we no longer had the staffing numbers to operate) for a riding Tri-flex greens mower.

This year one of our main leases was up, leaving some choice for the future of our equipment fleet. We decided  to lease a new sprayer and rough mower, while re-leasing our 2 fairway mowers and 2 smaller light duty mowers. This move saves the Club almost $45,000 from 2014 to 2015, while keeping some of our equipment that is in good shape, and getting in some much needed new equipment.

Triflex greens mower                                  New Sprayer                                      New Rough Mower

Next year, two of our "Lease to Own" lease's will be finished and we will own most of our utility vehicles, attachments, grinding equipment, and lighter duty mowing equipment. This will bring our yearly lease payments down by almost $55,000 from 2015 to 2016. This is a total reduction of almost $100,000 over 2 years, significantly reducing our overhead costs while ensuring we our getting the most out of our equipment fleet. Having the proper tools for the job is an important part of anyone's success, especially that of a maintenance facility and Turf Care Team.