Breaking down your leasing options when purchasing Toro machines

. minute read

When it comes to modernising fleets, golf and sports clubs have unique needs but a common denominator is ensuring high quality machines at the most convenient price. 

With shrinking budgets, however, this goal can be challenging – especially since paying upfront for best-in-class machinery can add stress to your cash flow. 

Our range of competitive finance packages, offered in collaboration with Novuna, allow you to get the latest Toro machines and irrigation systems with affordable, fixed payments – making Toro’s cutting-edge solutions accessible to all. 

Let’s take a look at how we make it possible. 

What is lease hire?

Our lease hire agreements, or operating lease, enable you to enjoy all the benefits of the latest turfcare innovations for the duration of the contract length and with minimum economic commitment.

There is no upfront purchase cost, just the payment for the first month plus VAT and small, manageable instalments afterwards. At the end of the contract, the asset will need to meet the pre-arranged conditions to be returned to us and a new finance agreement with new Toro equipment will roll in. 

Key benefits include:

  • Enjoy the latest Toro solutions on convenient contract cycles
  • Low capital requirement – first instalment only
  • Fixed payments
  • Easy and accurate budgeting
  • No residual value risks
  • The ability to offset lease payments against taxable profits 

What is lease purchase?

Our lease purchase, or hire purchase agreement, allows you to split the price of your new machinery into semi-annual, quarterly or lower monthly payments rather than purchasing the asset outright. 

The payments are fixed for the entire period of the finance lease, and after the final instalment, you’ll get full ownership of the machines. We can also help you create a tailored plan to align payments with the income and expenditure cycles of your business. 

Key benefits include:

  • Ownership of the equipment after the final payment
  • Low capital requirements – deposit plus VAT
  • Fixed payments of capital and interest
  • Easy and accurate budgeting
  • VAT payable as part of the deposit may be reclaimable 
  • The ability to claim capital allowances

What’s the difference between lease purchase and lease hire?

One of the key distinctions between lease purchase and lease hire is ownership. 

With the first finance package, you get to keep your fleet after the final monthly payment; with the latter, instead, you will start a new lease contract with new equipment. 

Other differences derive from this first one. For instance, with lease purchase and owning the machines you’re paying for enables you to claim capital tax allowance and requires a higher capital to pay the initial deposit – while with lease hire you can deduct payments from taxable profits. 

The long term strategy is also very different. With lease purchase, you will keep your fleet for a longer period of time, and with a good maintenance routine and quality machines your total cost of ownership will likely be lower – especially if the brand you choose has a good resale value. 

On the other hand, a rolling lease hire finance deal allows you to swap your old fleet with a new one at shorter intervals of time, empowering your team with the latest technological innovations. The upfront expenses will also be lower, as you won’t have to pay for the initial deposit and total VAT cost. 

Choosing the best option for your business and your budget

So, all things considered, which option works best for your unique situation? 

If you are planning on keeping your fleet for a long time, lease purchase is the way to go. Toro’s longevity and superior build quality will ensure your machines work efficiently for longer and retain a higher value when it’s time to sell them. 

If you are more interested in optimising your operations with the latest technologies available, lease hire is a great option. Toro’s bustling R&D department is always striving to develop new solutions for a changing turfcare industry, and the latest ranges of mowers or electric vehicles can deliver that extra level of quality that your club needs to stand out. 

How Reesink and Novuna can help

Both finance options are ideal for golf or sports clubs with limited budgets that still have the ambition to deliver the best results, aesthetics and playability with top end turfcare machines.

Wonder where to start? 

Through our financial partner, Novuna, we provide tailored and affordable asset financing solutions – designed to offer the confidence of predictable repayments, help you budget effectively and maintain healthy cash flow without disruptions.

Key features include financing for up to 100 percent of project costs, transparent terms and personalised support from a team dedicated to understanding your business needs, with a term of up to 7 years for even greater flexibility.

Explore our finance deals and learn how we can help you build your dream fleet at a sustainable economic pace.