Buying an Electric Motor in Instalments: Cash Price, Term and Total Payment Compared

When buying an electric motor in instalments, decide on the total payment, not on the monthly instalment: with equal instalments the total is T = t × n (t instalment amount, n number of instalments), and the difference from the cash price P, V = T − P, is what the credit term costs you. Instalments make sense if V is zero, or if the motor is needed now and paying cash would strain your cash flow; if V is large and waiting does not stop production, paying cash is preferable. At DRG Motor, periodic instalment campaigns may be offered with Halköde; ask on WhatsApp for the current option, and see current model prices on Buy Electric Motors Online.

This article contains no figures; all calculations are given with symbols, because the number of instalments and the term conditions change by period and by bank. First you will find the formulas that bring cash and instalment payments to the same measure, then the time value of money and the effect of a production stop on the decision, and finally a decision table and a pre-order checklist. For our article on energy and running costs after purchase, see What to Check When Buying a 380 V Electric Motor.

How do you bring cash and instalment payment to the same measure?

Four symbols are enough for the comparison:

• P: cash payment amount (the motor price paid at once)
• t: the amount of one instalment
• n: number of instalments
• T = t × n: total payment in instalments (if instalments are equal; otherwise add them one by one)

With these symbols, the cost of the term is V = T − P and the relative cost of the term is v = (T − P) / P. If instalments equal the cash amount divided by n, then t = P / n, so T = P and V = 0; in this case instalments let you spread the cash over time instead of paying today, with no extra burden. If instalments are greater than P / n, V > 0 and you need to ask what you gain in return for that difference.

When calculating, make sure three items are written in the quote or on the payment screen: the number of instalments n, the instalment amount t and the total amount T. If any of the three is missing, V cannot be calculated.

How does the time value of money change the instalment decision?

Even when V > 0, instalments are not always a disadvantage; the cash you keep today has a return or a use elsewhere. The way to account for this is to find the present value of the instalments:

• PV = t / (1 + r) + t / (1 + r)² + … + t / (1 + r)ⁿ

Here r is your business’s monthly financing cost (short-term borrowing cost or the use value of cash). Decision rule: if PV < P, instalments are financially better; if PV > P, paying cash is. With V = 0, PV is always smaller than P because you pay the same amount later. As V grows, PV approaches P and eventually exceeds it; beyond that point instalments are chosen only for cash-flow reasons.

How does a production stop enter the decision?

If a motor failure has stopped production, a third term enters the calculation: the cost of waiting. Let K_s be the hourly production loss and d_b the waiting time until cash is ready for a cash payment. The cost of waiting to pay cash is K_s × d_b. The rule then becomes:

• If V < K_s × d_b, buying the motor now in instalments costs less than waiting for cash.
• If V > K_s × d_b and the line can wait a few days, paying cash makes more sense.

In this comparison K_s is usually a much larger term than V; on a line that depends on a single motor, even a few hours of downtime can exceed the cost of the term. Conversely, for a spare motor or a planned replacement, K_s × d_b is close to zero and the decision is based only on V and PV. To see the energy a motor will use over its service life, use our energy consumption calculator.

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When to pay cash and when to pay in instalments? Decision table

The "Compare totals" line is a reminder: in an order with several motors, V is calculated for the order total, not for each motor; freight is added to this total as a separate line. The decision table only covers the financial side; the list below secures the technical and document side of an instalment order. Dimension checks are the step most often skipped in orders placed while the line is down, so complete the list before going to the payment screen.

Checklist before an instalment order

• Are the number of instalments n, the instalment amount t and the total T written on the payment screen or in the quote?
• Does your card limit cover the total amount?
• Does the product code suit your machine? Are frame, shaft diameter and foot dimensions the same as the old motor?
• Do voltage and connection (230/400 V or 400/690 V) suit your panel?
• Is freight included in the total or paid separately?
• Were invoice details (company name, tax number) given correctly before ordering?
• Have you read the warranty certificate and the delivery and return terms?

If you are unsure about the product code, check dimensions on the technical drawings page before ordering; buying the wrong motor in instalments lengthens the return and reorder process.

What instalment and payment options does DRG Motor offer?

DRG Motor is a manufacturer, supplier and seller of electric motors; the 120 models in the online store are listed with DRG-<frame>-<poles> codes. Periodic instalment campaigns may be offered with Halköde; since the number of instalments and the conditions change from period to period, ask for the current option on our WhatsApp line (+90 542 666 11 11) before ordering. All payment methods are listed on the payment options page.

The payment method does not affect the warranty: DRG MOTOR motors are guaranteed against material and manufacturing defects for 2 years from the delivery date (warranty certificate). Freight is handled by contracted freight and cargo companies and is paid by the buyer; delivery and return terms are on the sales, delivery and return terms page.

The 3 most common mistakes when buying in instalments

1. Comparing the monthly instalment with the budget: deciding because t fits the budget without looking at the total T. The comparison is always between T and P.
2. Stretching the number of instalments to the maximum: as n grows, t falls, but under conditions where V > 0, T grows too. Choose the shortest term you need.
3. Buying the wrong model quickly: if the dimension check is skipped while the line is down, the return and reorder take back the time gained with instalments. Check frame, shaft and voltage before ordering.

Which DRG models are often bought in instalments?

The table below shows aluminium-housed models in the 1500 rpm class commonly used in workshops and small businesses. Match the power and speed of your old motor with the table; the current value is also needed for the overload setting.

For cast iron housings, 1000 or 3000 rpm and larger powers, the 120 models in our online store are listed; you can also compare currents in the motor current chart.

Motors in this power range

• DRG-90L-4 – 1.5 kW – 1445 rpm – 90L · aluminium
• DRG-100L2-4 – 3 kW – 1450 rpm – 100L · aluminium
• DRG-112M-4 – 4 kW – 1450 rpm – 112M · aluminium
• DRG-132S-4 – 5.5 kW – 1460 rpm – 132S · aluminium
• DRG-132M-4 – 7.5 kW – 1460 rpm – 132M · aluminium

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Frequently Asked Questions

Can an electric motor be bought in instalments?

Yes. At DRG Motor, periodic instalment campaigns may be offered with Halköde; ask on WhatsApp for the current instalment option before ordering.

How is the total payment calculated for instalments?

With equal instalments the total payment is T = t × n. The difference from the cash amount, V = T − P, is what the term costs you.

Does buying in instalments affect the warranty?

No. The warranty depends on the delivery date, not on the payment method: 2 years against material and manufacturing defects.

How many amps does a 4 kW 1500 rpm motor draw?

According to the DRG-112M-4 data, it draws 7.95 A at 400 V and 8.37 A at 380 V; its rated speed is 1450 rpm.

To learn the current instalment option or to choose the right model together, call +90 (542) 666 11 11, write to [email protected] or use our contact page. All models and current prices are listed on Buy Electric Motors Online.