Should You Buy or Lease an Espresso Machine? Cost Guide

Buy or lease an espresso machine? The answer depends on your available capital and volume projections.

Buy if you have $15,000+ in reserves and plan to operate for 5+ years. Lease if you need to preserve working capital or want flexibility to upgrade.

The difference in total cost over 5 years is roughly $6,000; leasing costs more, but keeps cash in your business.

I’ve watched café owners make both choices. Some bought outright and never regretted it. Others leased, ran out of cash in month four, and closed. The right decision isn’t about the machine; it’s about your financial position.

Here’s how to decide whether to buy or lease an espresso machine based on real numbers, not sales pitches.

“Feeling overwhelmed by the paperwork? Let’s work together on your NYC coffee shop marketing so you can focus on opening your doors.”

Real Cost to Buy or Lease an Espresso Machine

Let’s use the Nuova Simonelli Appia II as an example, a solid 2-group machine most small cafés buy.

Buying Outright

Year 1 costs:

• Machine: $8,990
• Installation: $800
• Water filtration: $500
• Annual maintenance: $1,000
• Total Year 1: $11,290

Years 2-5 costs:

• Annual maintenance: $1,000/year × 4 years = $4,000
• Total Years 2-5: $4,000

5-year total cost to buy: $15,290

Leasing

Typical lease terms:

• Monthly payment: $250-280
• Lease term: 60 months (5 years)
• Total payments: $15,000-$16,800
• Maintenance often included

5-year total cost to lease: $15,000-$16,800

The Math

Leasing costs you $4,710-$6,510 more over 5 years than buying.

But that’s not the whole story.

When You Should Buy an Espresso Machine

Buy if these apply to you:

You have strong reserves. Minimum $15,000 cash available AFTER buying the machine. Don’t drain your entire bank account to buy equipment.

You’re confident in your business plan. You’ve done the market research, secured the location, and projected realistic sales. You’re not hoping it works; you know it will.

You want to own the asset. The machine becomes yours. Sell it if you close. Upgrade when you want. No one else controls the equipment.

You’re minimizing total costs. Buying saves $4,710-$6,510 over 5 years compared to leasing. That’s money staying in your business.

You can handle repairs. When something breaks, you pay for it. A service call runs $300-$800. You need reserves for unexpected repairs.

Real Example: Buying Worked

A café owner in Brooklyn bought a Nuova Simonelli outright. Had $25,000 in reserves after the purchase.

The machine paid for itself in 11 months through sales. After 5 years, the machine was still running strong, with zero loan payments and full ownership.

The financial freedom allowed her expand to a second location in year three.

When You Should Lease an Espresso Machine

Lease if these apply to you:

You need to preserve cash. That $8,990 stays in your bank account for payroll, rent, inventory, and marketing. Cash flow kills more cafés than bad coffee.

You’re uncertain about volume. If you’re not confident you’ll hit 200+ shots daily, leasing gives you flexibility. Outgrow a 2-group? Upgrade to a 3-group mid-lease with some agreements.

You want maintenance included. Many leases include annual service, repairs, and parts. One major repair ($2,000+) can make leasing worth it.

You value flexibility. Close in year two? Return the machine (after early termination fees). Buying means you own a $9,000 asset you need to sell.

Tax benefits matter. Lease payments are operational expenses—fully deductible each year. Buying requires depreciation over time (talk to your accountant).

Real Example: Leasing Worked

A café owner in Portland leased her machine. Used the saved $9,000 for aggressive opening marketing. Hit 300 shots daily by month two because customers knew she existed.

The marketing investment returned 10x more than saving $6,000 on lease costs would have.

Hidden Costs of Buying vs Leasing an Espresso Machine

Hidden Costs When You Buy

Repairs aren’t predictable. A $2,000 boiler repair in year three wasn’t in your budget. Now you’re scrambling.

Depreciation is real. Your $8,990 machine is worth $4,000-$5,000 after 5 years if you sell it. That’s a $4,000-$5,000 loss you don’t see until you exit.

Opportunity cost. That $9,000 could have funded three months of Instagram ads or hired a part-time barista.

Hidden Costs When You Lease

Early termination penalties. Close your café in year two? You still owe the remaining lease payments, often 50-100% of what’s left.

Buyout fees sting. Want to own the machine at lease end? Buyout fees run 10-20% of the machine’s original price ($900-$1,800 extra).

You never own it. After paying $15,000-$16,800 over 5 years, you either buy it out, return it, or re-lease. You don’t automatically own it.

Interest is buried in payments. Your $8,990 machine costs $15,000-$16,800 through leasing. That extra $6,000-$7,800 is interest plus fees.

Decision Framework: Buy or Lease Espresso Machine

Answer these questions honestly:

Question 1: How Much Cash Do You Have?

Less than $15K total: Lease. You can’t afford to tie up all your capital in one asset.

$15K-$30K total: Could go either way. Calculate what you need for 3 months of operations AFTER buying.

$30K+ total: Buy. You have enough cushion to own the asset and handle surprises.

Question 2: How Confident Are You in Year-One Volume?

Very confident (secured contracts, high foot traffic location): Buy. You’ll generate cash fast enough to justify the upfront cost.

Moderately confident: Lease. Preserve cash until you prove the concept.

Uncertain: Don’t open yet. Seriously. Figure out your business model first.

Question 3: What’s Your 5-Year Plan?

Staying in this location 5+ years: Buy. Total cost savings of $6,000+ matters over time.

Might expand, relocate, or pivot in 2-3 years: Lease. Flexibility is worth the premium.

This is a test concept: Lease. Lower commitment if it doesn’t work.

The Calculator

To buy, you need:

• Machine cost + installation + filtration: $10,000-$11,000
• PLUS 3 months operating expenses: $15,000-$25,000
• Total reserves needed: $25,000-$36,000

To lease, you need:

• First month + deposit: $500-$800
• PLUS 3 months operating expenses: $15,000-$25,000
• Total reserves needed: $15,500-$25,800

If you don’t have these numbers, you’re not financially ready to open.

Common Mistakes When Deciding to Buy or Lease

Mistake 1: Buying when you’re cash-strapped. You spend $9,000 on a machine, then realize you can’t afford opening marketing. No customers = no revenue = you close.

Mistake 2: Leasing because you didn’t save enough. Leasing is a legitimate strategy, not a bailout for poor planning. If you lease because you don’t have reserves, you’re still undercapitalized.

Mistake 3: Not reading the lease terms. Maintenance included? Early termination fees? Buyout price? Insurance requirements? Read the contract. All of it.

Mistake 4: Comparing lease payments to purchase price. “$250/month sounds cheaper than $9,000!” It’s not. $250/month for 60 months = $15,000 total. Do the actual math.

Mistake 5: Ignoring tax implications. Talk to an accountant. Buying requires depreciation schedules. Leasing offers immediate deductions. The tax treatment affects your real cost.

Buying vs Leasing: Which Cafe Owners Choose

From working with café owners across the US, here’s what I’ve seen:

First-time owners: 60% lease, 40% buy. Most preserve cash for the learning curve.

Experienced owners opening second locations: 80% buy. They know the business, have reserves, and want to own assets.

High-traffic corporate locations: 90% buy. Volume justifies the upfront investment immediately.

Pop-ups and temporary concepts: 100% lease. Flexibility is the entire point.

There’s no “right” answer for everyone. The right answer is what matches your financial position and risk tolerance.

Frequently Asked Questions About Buying or Leasing Espresso Machines

Is it better to buy or lease an espresso machine?

Buy if you have $25,000+ in total reserves after the purchase and plan to operate 5+ years. Lease if you need to preserve working capital for operations and marketing. Buying saves $6,000+ over 5 years but requires larger upfront capital.

How much does it cost to lease an espresso machine?

Commercial espresso machine leases typically run $200-$400 per month for 60 months depending on the machine price.

A $9,000 machine costs approximately $250/month, totaling $15,000 over 5 years. Most leases require first month + security deposit upfront ($500-$800).

Can you lease to own an espresso machine?

Yes, many leasing companies offer lease-to-own options. After completing the lease term (typically 60 months), you can purchase the machine for a buyout fee, usually 10-20% of the original price ($900-$1,800 for a $9,000 machine).

What are the tax benefits of leasing vs buying an espresso machine?

Lease payments are fully deductible operational expenses each year. Buying requires depreciating the asset over 5-7 years (Section 179 allows accelerated depreciation). Consult your accountant—tax treatment varies based on your business structure and location.

What happens if I close my cafe while leasing an espresso machine?

You’re responsible for remaining lease payments, typically with early termination penalties of 50-100% of remaining balance. Some leases allow you to transfer the lease to a new business owner. Always review early termination clauses before signing.

Does leasing an espresso machine include maintenance?

Some commercial equipment leases include annual maintenance and repairs. Read your lease agreement carefully—maintenance inclusion varies by leasing company. If not included, budget $800-$1,200 annually for professional service on top of lease payments.

Can I negotiate espresso machine lease terms?

Yes. Negotiate monthly payment amount, lease term length (48 vs 60 months), maintenance inclusion, buyout price, and early termination penalties.

Everything is negotiable, especially if you have strong credit or are leasing multiple pieces of equipment together.

Make Your Decision

Most café owners should buy an espresso machine if they have the reserves. You save money long-term and own the asset outright.

Lease if preserving cash is critical or you need flexibility early on. The premium you pay for leasing is insurance against uncertainty.

The wrong decision is buying when you don’t have reserves or leasing because you failed to plan financially. Both leave you vulnerable when unexpected costs hit—and they always hit.

Calculate your total available capital. Subtract 3 months of operating expenses. If you have $10,000+ left over, you can afford to buy. If not, lease and use that cash to drive customers through your door.

Your espresso machine won’t make or break your café. Running out of cash will.

Ready to buy? Check current pricing on the Nuova Simonelli Appia II 2-Group or 3-Group version for higher volume operations.

Need help planning your complete equipment budget? Read our guide on essential coffee shop equipment and [7 best commercial espresso machines]

Related Guides:

• 7 Best Commercial Espresso Machines for Small Coffee Shops
• Essential Equipment List for Coffee Shop Startups
• Coffee Shop Business Plan Guide
• Coffee Shop Profit Margins

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