Has anyone Leased a Butler System? | TruckMount Forums #1 Carpet Cleaning Forums

Has anyone Leased a Butler System?

True clean

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Butler System is advertising a 0 down $799 per month lease. supposedly for a 3 year term. I am seriously considering leasing one.They give you a new system and van every 36 months,any feedback would be appreciated ,,,
 
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LustreClean

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Interested. My question would be do you have the option to buy the van when the lease is up? What would it cost?
 

John Rockwood

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It's the American way, get in debt, stay in debt, get pissed that your in debt, can't figure out how to get out of debt cause your stressed out because of debt. Butler does know what's best for you.
They will probably even convince you to sign up for auto payments even if you don't want to. "NO need to worry about mailing that check this month" it's already done. LOL
 

Prowler

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No down payment but u might have to pay TTL up front and at the end of the lease u will have to pay for many misc. things. The no money down is for great credit folks.
 

dlshetler

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It's the American way, get in debt, stay in debt, get pissed that your in debt, can't figure out how to get out of debt cause your stressed out because of debt. Butler does know what's best for you.
They will probably even convince you to sign up for auto payments even if you don't want to. "NO need to worry about mailing that check this month" it's already done. LOL

Dude?! You really think $799/month for an amazing machine that can make you 20 times that is bad debt?
 

P10der

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Dude?! You really think $799/month for an amazing machine that can make you 20 times that is bad debt?
20 times Guy? Come on! $16000 a month
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P10der

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You made around 240 your second year? That is very good
 

Rick Imby

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There are significant advantages to leases.

The whole lease payment is deductible on your taxes. You know exactly what your machine will cost you per month.

There will be terms to the lease, how many hours per month average on the machine and the mileage on the van also---I am guessing. If you go over these there will be a per mile and/or per hour charge at the end of the lease.--Again my guess.

There will be a buyout price that will be stated on the lease when you sign it---residual value. These are often high enough that it is not usually a good deal for you to purchase the unit.

If at the end of the lease you think the van is worth more than the stated residual value then you can buy it or sell it.

An Accountant friend of mine used to lease suburbans for 2 years when they were going up in price a couple thousand a year. He leased about four in a row and sold them for significantly more than the residual. This normally does not happen though.

In a lease the vehicle actually is not yours, you are just renting it. The interest rate is actually the internal rate of return figured by the leasing company and is not stated.

Usually the leasing company (if it is a seperate company from Butler) will buy the machine and then will own it when it is done. They may have a guaranteed price from Butler as to what it will be worth at the end of the lease or a deal with Butler to sell the van at the end of the lease.

Long term it gets Butler into two different price points where they can sell or lease their machines. New or 3 years old.

They will probably offer the used machines for lease at a lower price also.
 

longkenn

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There are significant advantages to leases.

The whole lease payment is deductible on your taxes. You know exactly what your machine will cost you per month.

There will be terms to the lease, how many hours per month average on the machine and the mileage on the van also---I am guessing. If you go over these there will be a per mile and/or per hour charge at the end of the lease.--Again my guess.

There will be a buyout price that will be stated on the lease when you sign it---residual value. These are often high enough that it is not usually a good deal for you to purchase the unit.

If at the end of the lease you think the van is worth more than the stated residual value then you can buy it or sell it.

An Accountant friend of mine used to lease suburbans for 2 years when they were going up in price a couple thousand a year. He leased about four in a row and sold them for significantly more than the residual. This normally does not happen though.

In a lease the vehicle actually is not yours, you are just renting it. The interest rate is actually the internal rate of return figured by the leasing company and is not stated.

Usually the leasing company (if it is a seperate company from Butler) will buy the machine and then will own it when it is done. They may have a guaranteed price from Butler as to what it will be worth at the end of the lease or a deal with Butler to sell the van at the end of the lease.

Long term it gets Butler into two different price points where they can sell or lease their machines. New or 3 years old.

They will probably offer the used machines for lease at a lower price also.
From my understanding, if you lease, the lease should be a capital lease for you to be able to fully deduct it. I am no tax expert, but that is what my tax guy told me when I was considering leasing a vehicle.
 

Rick Imby

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For it to be a capital lease buyout at the end must be at least 10% of the purchase price. The buyout (residual value) on these leases is going to be way more than 10% of the original value of the van.

The tax law has this so that it isn't just a normal sale written as a lease.
 

owenscott

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Never got the numbers but really 800 a month for van n machine isnt terrible ... now is it.
If ur normal you have a 400$ car payment or so.
Seems reasonable to me :shrugs:
 
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John Rockwood

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Dude?! You really think $799/month for an amazing machine that can make you 20 times that is bad debt?
I was just cracking a joke... Dude. You are right that it is an amazing machine but the majority here make far more than 20 times that a month even in the winter.
I better run know I have a 1000.00 2 room special to clean with 800 for protector. Could pay the months lease with this one job.:cool:
 

Prowler

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$800 a month for a guy in California will be chump change compared to a guy in another state. In Cali. big city, high dollar place, jobs might start at $500 for a house. In some Texas cities you compete with wetbacks for $100 for a whole house. $800 a month in one place does not equal the same $800 in another place.
 

matt30577

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$800 a month for a guy in California will be chump change compared to a guy in another state. In Cali. big city, high dollar place, jobs might start at $500 for a house. In some Texas cities you compete with wetbacks for $100 for a whole house. $800 a month in one place does not equal the same $800 in another place.
I agree with you on that, but I also agree with $800 being a killer deal. Just my hydra master boxxer XL is $500/month on a 5yr note. I'll pay $300 more for a van/truckmount combo any day. I live in Georgia, and my income is half of the west coasters. So if I can afford $800 easily, so can any other established business.
 

the rugman

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Nice to get a new rug every 3 years as well - trucks in our biz take a beating.
 

Sjmakeithappen

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Correct me if Im wrong, but isn't there only one location. What about servicing and breakdowns. Without warranty issues, won't you have to take it back to them for any problems?