John's Auto Body

This week, Paint Booth Technologies finished a state of the art paint booth system for John's Auto Body in Bristol, IN. John's Auto Body specializes in custom painting of RV's. Their two (2) 54' Long booths allow them to fit just about any size of RV in they need. John's Auto Body has been in business for over 25 years and are the leading custom painter's in the area.

Their new 25,000 square foot facaility, located at 907 South Division St. Bristol, IN 46507, will be able to accomidate 8-10 RV's at a time. Chris Clark, Manager and Co-owner is excited about the new possibilites of their larger site. If you have any questions or need some specialty paint done on large vehicle's, call Chris at 574-596-5817.

WHY EQUIPMENT LEASING HAS BECOME SO POPULAR

WHY EQUIPMENT LEASING HAS BECOME SO POPULAR
IN THE AUTOMOTIVE INDUSTRY

Everything you always wanted to know….

In today’s rapidly changing business environment many companies are looking for alternative ways to fund equipment purchases. Leasing has become a popular equipment financing option. A recent discussion with the owner of a body shop in my home town points out that there are still people in this country that still do not understand the truth about leasing.

His comments to me were, “Leasing is for companies who can’t afford to do business in cash” and “Why should I pay a fee to use someone else’s money when we have plenty of our own?”

My question to the owner was, “Why waste cash on assets that may quickly become obsolete and could be losing value for your business the minute you turn on the switch?”

Paying Cash: The Concept!

Most people pay cash because they have it. It is sitting there in the bank just waiting to be spent on something productive like a new piece of equipment.. Besides if you pay cash for that new equipment you don’t have to mess with those pesky monthly payments. Additionally, since you feel you own the equipment, you think you can depreciate it, which is a great write-off that helps you lower your taxes. In your mind you feel paying cash is an excellent way to go.

Paying Cash: The Fallacy!

Many times an example makes the point best, so let’s use an example to make a very important point here. Let’s assume you hire a good friend of yours to work for you. You have agreed to hire him for $40,000 per year because in your analysis you have determined that his employment will either make you or save you an amount in excess of that. Now he comes to you and agrees to sign a binding contract of employment where he promises to work for you for the next 5 years under well-defined conditions. As a result he wants his salary of $200,000 right now. I assume you would decline his offer because as a good businessman you are aware of the two basic concepts that come into play here: (1) you are going to pay him out of the cash flow he makes or saves you; and (2) why pay in today’s dollars what you can pay in tomorrow’s dollars? This same concept is as basic to purchasing equipment as it is to hiring employees. You should let the equipment pay for itself out of the cash flow it generates for you over its useful life & use inflated dollars to do it.

I know you have heard this important quote in your life at least once: “Always pay cash for things that appreciate in value & always lease things that depreciate in value”. As I write this article I don’t want to get into all the benefits of leasing and why you should consider it, I believe we are well past that these days. Well over 80 million companies lease their equipment and it make sense. This article is to point out why leasing has become so popular in the automotive industry. I truly feel the number one reason leasing is booming these days is from the “ Jobs and Growth Tax Relief Reconciliation Act of 2003”. President Bush signed into law this “Act”, which reduced taxes and provided incentives for business investment. Of particular importance to our customers are the following provisions: Expensing Depreciable business assets – IRS Section 179. The primary benefit of making an equipment purchase before the end of the year is tax deduction that a business will receive from what’s known as first-year expensing under Section 179 of the Internal Revenue Code. You are now able to deduct up to $103,000 of the cost of the equipment during the year that it is purchased, (but not necessarily paid for) and placed in service after May 5, 2003. A business customer is free to pick any equipment that the company needs from the vendor of its choice.
Section 179 is designed to help businesses grow their company.

There has never been a better time to purchase new or used equipment.

Leasing works for any type of business. Every imaginable type of organization leases throughout the world including proprietorships, partnerships, corporations, and government agencies, religious and non-profit organizations. Over 80% of American businesses lease at least one of their equipment acquisitions and nearly 90% say they would choose to lease again.

Michael Choma is President and CEO of Innovative Capital Corp. His commercial finance company provides “innovative & creative” leasing solutions for all types of businesses. Michael’s ongoing goal is to be able to educate customers on leasing and to explain every tax advantage so that his customers may take full advantage of all of the benefits made available
888-869-0070 Ext. 201.

Paint Booth Installation

The installation of a new paint booth can be very simple, IF, you plan correctly.

After the daunting task of buying a paint booth you are left felling exhausted, overwhelmed and wishing you had never gotten into this business. There are hundreds of distributors, manufactures, and "Bubba's" paint booths reps that all have different ideas about what spray booth you should buy. After finally buying one and feeling relieved...It arrives.

Most suppliers never talk to you about the installation of your new paint booth. They are afraid of loosing a sale because this is where the "fun" begins. There are a lot of variables that come into play once you have received your paint booth. We are going to talk about some of those in this article.

First, and the most important thing one can do is make a plan. "Plan your work, and work your plan". Decide where you want your booth and make a drawing so it fits best in your shop. Measure your location and then find a drawing of a paint booth that you want. If the website you are looking at for a paint booth doesn't have a drawing make sure to call and ask for a faxed or emailed copy. This will help in making sure, once you receive you paint booth, it fits.

Second, decide if you have the expertise or the time to put up a paint booth. An average size automotive booth, 14'w x 9'h x 26'l, will take 2-3 "mechanically inclined" people about 3 full working days to put it together. (This does not include duct work or an air make up unit) The more accessories your booth has, the longer it will take. A professional paint booth installation crew can put up the same booth in about 1.5-2 days for about 4000-5000 dollars. This is where you need to do some math. Be sure to calculate you time, and possible down time, verses the price of have an installation crew do it for you.

Third, before your booth arrives make sure you have all the permits that are needed before you start to install your paint booth. Check with your local inspector and fire marshal to make sure you are compliant. Also check with your paint booth supplier that the electrical matches what you have available. All these checks will save time and money.

And last but not least, check with past customers from your supplier. Both those who installed their own pain booths and ones who had them installed. This will give you an insite into the planning that you need to make if your want to install your own paint booth.

These are just a few of the things you need to be aware of before purchasing your both. Find a reputable supplier who will help you from the begining and support you the whole way through. Good Luck.

Jody Burkeen
Paint Booth Technologies
1-888-815-3745

Paint Booth Technologies- Happy New Year-2006

Happy New Year's from Paint Booth Technologies. We would like to thank all of our customers from 2005 and look forward to the new ones in 2006. At Paint Booth Technologies, we have started our new years resolution by adding more products to our paint booth line. We are giving our customers the products they need all in one source. Our product line has expanding to air compressors, frame racks, and all the accessories for your paint booth application. Please go to our website and see our new selection of paint booth products.

Over next few weeks we will be posting paint booth information. This information will help you with maintenance, sizing and overall perfomance of you paint booth system. Stay tuned.

Paint Booth Technologies