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Thread: Leasing servers

  1. #1

    Leasing servers


    I was talking with the Dell Rep, and he approved me for $25K credit for leasing the servers, but when I asked for the interest rate it was whooping 24.xx% per annum.

    I mean on my student plus loans, i pay 2-4%, for mortage, I pay 5.5%, and my creditcards are 11.82%, and here is the Dell asking for 24.xx% interest. That is damn way too much!!!

    I am paying all in cash since I wont be able to sleep with 24.xx% interest rate keep hitting me in the dreams.

    Do you all who lease the equipments pay this high interest rate?

  2. #2
    Join Date
    Dec 2002
    Santa Monica, CA
    How is your credit history, maybe the interest rate is relative to your credit rating?

  3. #3
    My credit history is absolutely perfect, or more like an ideal one! 815 pts.

    Nothing wrong there.

  4. #4
    Join Date
    Jan 2004
    Dell Financial Services has horrible interest rates, pretty much 20%-25% across the board. As far as I know it's outsourced financing too w/t a 3rd party under the Dell name.

    I know as far as their consumer financing goes your credit rating does have a small impact but you need pristine credit to get their best advertised rate.

    As you've noted you're better off having your local bank finance the charges, or take out a loan at around 10-12%, or even just put it on your credit card.

    There's really little reason not to buy the equipment and get your value out of it till you can retire it or sell it off either here or on eBay after a few years of service.
    Last edited by sshepherd; 05-24-2005 at 05:28 PM.

  5. #5
    Volume is the key. We lease quite a few machines from HP, and get much better rates (less than 17%, above 12%) per annum. When we started, we were getting MUCH higher rates on lease. A friend I have who works at Nationwide Insurance pays about 40% of the list price for servers from IBM.

  6. #6
    I find that if you get leasing through a 3rd party leasing company not related to any of the computer companies (HP,DELL, etc...) that you can get very good deals. We lease some servers in the 12-15% range through them. You just take the quote to them, they buy the equipment and than lease it to u. Real simple... Real cheap...

  7. #7
    Join Date
    Feb 2002
    New York, NY
    Try working with your bank. Our highest rate is 10%.
    Scott Burns, President
    BQ Internet Corporation
    Remote Rsync and FTP backup solutions
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  8. #8
    Join Date
    Jan 2003
    Chicago, IL
    You will almost always pay more interest on a lease than most other types of credit. With a lease, the only collateral they have is equipment that depreciates quite quickly. This equipment is also moveable, harder to track, etc. increasing overall risk as well. In a mortgage, real estate prices almost always appreciate, etc. greatly reducing the risk and student loans are generally backed by the US governemnt in some way, again reducing their risk.

    If you have credit lines other than the lease that have lower interest than by all means, use them first. Generally working a general business loan will also garner a much lower interest rate.

    Still, over 20% is quite high...
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  9. #9
    Join Date
    Oct 2003
    Do it via bank - don't waste your time direct with the company those are insane rates.

    You have good credit - so the bank will have no issue with throwing $ at you, even if the depreciation of the equipment is fast.
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