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Pros & Cons of Leasing vs. Owning your tanks

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  • mccutter
    replied
    The tank, boss! The tank!

    I own all my tanks but I'm not sure of the sizes: Oxy and Acetylene (Ace. is proportionally larger, about 2-3 times the size but they are the same height), An 80? and 125? Argon and 125? Argon/CO2. All were bought from my local Holox/Linde and when I'm out of gas I'll bring the tank to them and just swap with one in the pile, making sure to grab a pretty one since I DID buy a new tank. If they don't have a pretty one they'll either refill mine or get a pretty one for me. My tanks live indoors and are in very good condition. I've swapped up for larger tanks with no problem--they just tack $25 or so onto my account and it is a done deal. If I were to sell them, the buyer could have them filled at any Linde gas supplier in the country, no questions asked. No serial numbers are ever recorded. I write down the new, full pressure of a new tank and compare it to the last fill to make sure I'm not getting boned. I don't worry about pressure testing because I'm always getting a "new" tank. That's my story and I'm sticking to it!

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  • burninbriar
    replied
    Originally posted by frank865
    When I got them filled, they always swapped tanks. Nobody ever asked about the lease, but about 5-6 years ago I got to feeling guilty about the expired lease agreement , so I asked my "friendly local neighborhood Dave" at the LWS if I needed to renew it, & what's it going to cost me? He said the place had changed owners a half a dozen times since that agreement, thanks for asking, but as far as we're concerned, you own those tanks!
    The exact same thing happened to my buddy I worked with in Tucson, the only differance is the company changed hands before his first exchange. He really made out good on that deal, I gave him the torch's & regulaters and the gas co. gave him the bottles.

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  • Portable Welder
    replied
    Dont you guys know that you can only lease or rent the big bottles, they will sell the small ones but not the big ones. Its a Fedral Law.
    Thats what they tell you in my neck of the woods, When your young you just assume their right.So a couple of years ago I started questioning this and could find no such law. It wasnt just one supplier it was every single one in my area that would tell you ( OH you cant buy them )
    I finally gave my supplier and altamatem and he said he would sell them to me and asked me to keep it quiet because thats how he makes his money.

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  • Tailshaft56
    replied
    My O/A bottles are on a 15 year lease with Linweld. The lease agreement states that they can be returned for full credit at any time till 30 days at end of the lease. If not returned they own my deposit I own their bottles.

    My Mig and Tig bottles were outright sales. Just today I traded the Argon out as I was nearly empty. Traded up to K type. (250 cft)

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  • frank865
    replied
    Originally posted by alha
    I went to my local welding shop, noticed that they both lease and sell tanks. Are there any obvious benefits to going one way verses the other? I usually like to own my stuff, unless it is something that would be obsolete fairly quickly, and is updated often. Any compelling reason to go one way vs. the other? What do most of you do, and are you a large outfit or a small one man shop? I would be a one man show, & wouldn't use a huge amount of gas, if that makes a diff. Thoughts?
    Different areas have different prices...When I got my O/A tanks, in the mid 70's, all that I could get was a long-term lease...$100.00 for 20years on the oxygen & 15 on the acetylene, they figured that was the average working life of the cylinders at that time. When I got them filled, they always swapped tanks. Nobody ever asked about the lease, but about 5-6 years ago I got to feeling guilty about the expired lease agreement , so I asked my "friendly local neighborhood Dave" at the LWS if I needed to renew it, & what's it going to cost me? He said the place had changed owners a half a dozen times since that agreement, thanks for asking, but as far as we're concerned, you own those tanks! ( Of course I have bought several thousand dollars worth of equipment from him too). That's another reason to buy from the LWS whenever you can
    You should find out what it costs to lease (in your area) vs cost to buy & "run the numbers" to find out how much it will cost you per year.

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  • TheRealSpinner
    replied
    When I first got into welding, I got a an Oxy-Acet set-up, and rented both tanks because I didn't have the money to purchase outright. I think it was like $12 for one and $15 for the other a month. Sounds cheap right? I ended up not paying for two months and the bill was $75. It still took me over a year to realize that I payed at least twice what they were worth rent.

    Now, I always buy outright first. If for no other reason, price of steel. As steel prices go up, so does the price of a cylinder. With exchange at every refill, the value of your cylinder only goes up. A cylinder that costs $175 now might go for $200 6 months from now. You just made $25 and don't have to pay rent.

    I am a hobbiest and own all my bottles:
    150cft Oxygen
    similar Acetelene
    80cft argon
    120cft argon/co2
    150cft agron

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  • hankj
    replied
    Originally posted by alha
    I went to my local welding shop, noticed that they both lease and sell tanks. Are there any obvious benefits to going one way verses the other? I usually like to own my stuff, unless it is something that would be obsolete fairly quickly, and is updated often. Any compelling reason to go one way vs. the other? What do most of you do, and are you a large outfit or a small one man shop? I would be a one man show, & wouldn't use a huge amount of gas, if that makes a diff. Thoughts?
    You really need to know what you have avilable in your area. If you have a distibutor that will sell the tank, and then exchnge it at refill time, I'd buy if my useage was low. The obvious reason is amortization of the cost over time. Once that's done, your jug ain't costing you!

    If I was running through multiple bottles per week, I'd probably lease. Most high-volume operations get delivery service.

    I can't go through enough of anything to get it delivered - welding gas, beer, nothin'!

    Hank

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  • Fishy Jim
    replied
    Hydro testing is around $12. Don't let that scare you off. The two bottles I own from "not new" are both on their 3rd certifications. Bottles do wear out and fail the test, but they're not likely to if you don't abuse them. My distributors both know of bottles approaching 70 years in their systems.

    Considering the risk of losing one to the tester (it failing), renting just seems silly to me. You'd pay for a bottle in rent in 1/3 the time you'd have on the first certification. So even if it failed the first one, you'd still be dollars ahead. Even if they won't even exchange tanks, a refill takes less than a day. If I bring it in before 10, I can pick it up after 3.

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  • aametalmaster
    replied
    I own my own bottles but trade them in to get filled every now and then. Now if you buy your own small bottles where you can't trade them for full ones you are responsible for the pressure tests every 10 years...Bob

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  • alha
    started a topic Pros & Cons of Leasing vs. Owning your tanks

    Pros & Cons of Leasing vs. Owning your tanks

    I went to my local welding shop, noticed that they both lease and sell tanks. Are there any obvious benefits to going one way verses the other? I usually like to own my stuff, unless it is something that would be obsolete fairly quickly, and is updated often. Any compelling reason to go one way vs. the other? What do most of you do, and are you a large outfit or a small one man shop? I would be a one man show, & wouldn't use a huge amount of gas, if that makes a diff. Thoughts?
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