We have a 2120-1 that is near the end of a fair market lease of 2 years (was new at the start).

Has anyone ever been involved in such a deal?

If you do the math using new price and the payments knowing the interest rate, it would seem that the residual value (approx 20%) is lower than the fair market value.

They (GE Finance) has not called with what they think the fair value is. This will begin the options stage

What is the fair market value?

Regards,
Alan

I have one such as yours and an old 2110 as well. I know I wouldn't give over $500 but with software and all maybe worth $1500????? I'm sure it would sell for that if someone was hunting and in need for a data collector box. I think it has zero appeal to a corporation and limited to anyone in the USA. Or, I could be wrong! Would be nice to know what others think.

Alan,

I would put the value between $1500 and $2500 for a single channel unit depending on hte firmware and condition. You can certainly pay more if you check with some of the people who have advertised them here over the last few years.

Danny , Sam

Thanks, I will let you know what the good folks at "Generous Electric" say it is worth.

If they are close to your numbers, a buyout is probably best.

This analyzer meets and exceeds all of our requirments, there is no need to upgrade.

Regards,
Alan

A consideration is that CSI has announced that the 2120 is nearing the end of its lifespan and will no longer be supported in a few years (see various threads on this topic). I don't think there's a difinitive answer on how much longer the 2120 will be supported - 3 years seems to be a common figure - but you may want to consider this point and/or use it to negoiate an adjusted value.

Jon
Spintelligent Labs

Alan, I upgraded to the 2130 2-channel from a 2-channel 2120. I wouldn't have I don't think, if the 2120 (not under maintenance) had not developed a problem on the input circuit. I couldn't see putting more money into it. But had that not happened, I'm sure I'd still be using it.

That said, I'd give around $2000 for a 2120 with FastBal software (preferrably FastBal I), just to have a spare for balancing.

They came back with $6800.00 as the fair market value.

Really though I can't see a 2 year old anaylzer being worth less than $4K CDN.

Industrial Leasing seems to be a very lucrative business,

Next the negotiation part begins.

Thanks

Alan

I guess it just depends on whose market you want to be fair to.

Hi Alan,

I am interested in your equipment
(CSI 2120+software). Send me an e-mail if you wish to sell it.
cristi_filisanu@yahoo.com

Regards,

Cristi

Pickering, Ontario

Alan, you're business is much larger than mine and I'm sure you "lease" equipment so that you can 'expense' it as opposed to 'capitalizing' it (a tax matter). As a small business, leasing doesn't make sense for me. If I buy a piece of equipment I can expense the whole cost if I choose to, or I can capitalize it (and then depreciate it), or I can use a combination of the two. I usually borrow the money from my local bank (at a lower interest rate than lease companies charge), so I'm not out any cash up front. If I expense it, I get a tax deduction on money that I've not even spent yet. Plus the interest on the loan is deductible on my taxes as well.

Just out of curiosity, why do you lease equipment?

Rusty

All valid points.

Our humble company is also incorporated.

We own RBMware, and a 2115 equiped with the fast bal. We stumbled accross a bunch of new business (more than I can handle myself, so I sent my senior mechanic to "school" +OJT)Since I could not get more than a year or two commitment with any of these customers (and knowing the attention span of the bean counters at these places) I chose a short term solution. If it did not work out (which was my prediction) I could send the equipment back, we would still have the 2115 and could do what we always did (mostly on my own). I think it worked OK, as luck would have it though things have continued onwards and upwards, and financing it would probably been better. I should have chose a buck out solution over 3 or 4 years maybe, similar to what we did with our server and network here.

In our business (vibration and related stuff is only like 10%) we get years that we have a very strong cashflow, other years not so good. Keep in mind that you never know what expense is coming up, and a customer is more likley to close down than a new one open. So we manage from a day by day cashflow, we are small for our industry (industrial distribution and services) and have survived for over 30 years and 2 generations this way. Although some things in hindsight could be more carefully managed. We just try our best.

Regards,
Alan

Alan, you've been at this long enough that you know what you're doing... I wasn't questioning your approach.... was just curious. Besides, how smart could I be that I let your balancing machine get away from me? I'm still kicking myself about that!

No sweat Rusty, your input is always valued, keep it coming.

I will keep my eyes peeled for another balancer! They come up once in a while.

I ended up negotiating $5K for the 2120. I am sure it is worth more than that on the books.