Is Cash Still King at Your Club?

    To lease or not to lease, that is often the question. Years ago my wife and I went car shopping and it was just when leasing was becoming more of an option to get a car. After the sales pitch, my wife and I walked out and she said that the leasing option sounded great. I laughed and said that we have it for our customers too and I wasn't so sure.... After lots of work through the years,with people from Toro, like Mike Nesdahl & Jack Asinger, I now understand what is in the stew that makes up a lease payment.
     At that time, leasing was just being introduced into the Turf industry. Now when I say leasing, I am talking about a true lease or fair market value lease, where you turn it back in at the end of term and not a conditional sales contract or $1 buyout. Today leasing is used as much as a straight cash purchase in my market and in warmer parts of the USA with higher hour usage, leasing is even more popular.
       As we all know every club is different. So the big question is why lease vs. purchase? I have the same answer for anyone who ever asks me....It depends on your club! The perception that clubs that are cash poor lease is a misnomer that is not true any longer. I work with some clubs that are classic traditional clubs that money is not an issue and they lease their high usage units. WHY? Because you can get the latest and greatest tools, not tied to capital dollars fluctuating, consistent repair & maintenance budgets and the most equipment for your money.
       Now comes my favorite comment "We are a cash club!". Really?
Do you lease your golf carts???That is different, why I have never been given a good answer!
      My club is never going lease.....not if you don't give them the option by doing your homework on clubs that your facility holds themselves as a measuring stick against and see if they are leasing. Find the board members who work in the financial world, talk to the members who own companies that have equipment fleets and ask questions. What often moves the dial is a member saying, "Why aren't we doing this, when Corcoran Country Club up the street is?"
      If you don't feel comfortable talk about it, I would urge you to get educated about it. If you have a vendor you trust, use him as a resource. I get asked multiple times a year by turf managers to speak to someone at their facility about leasing and they want to know if it is a viable option.
The reality is it all depends on your club!

WJC