Construction is a highly competitive industry and to survive the cutthroat competition, builders and construction companies need access to several tools and equipment. The efficiency of construction jobs largely depends on the tools and machines such as diggers, backhoes, excavators, tractor loaders, crawler dozers, and much more. Several equipment and tools are needed on the job site to speed up the otherwise laborious tasks. These machines and equipment are important but purchasing all construction equipment requires significant investment. No matter how big or small your business is, you may not always have the required capital to invest in all the equipment. Whether you need a machine for seasonal work or lack the needed capital, buying isn’t always the best option.
Construction companies and contractors have three options to get the needed equipment- buy, rent, or lease. However, it can be confusing to determine whether the company should buy all the needed equipment outright, rent it, or consider leasing. Every business has a different way of running its operations and an option that works for one company may not suit the other. When it comes to getting equipment, several factors need to be considered such as the budget, equipment cost, the duration for which equipment is needed, and more. So, let’s consider different options to help you understand which one is the right choice for your business.
Buy, Rent, Or Lease Construction Equipment?
Construction jobs need equipment such as excavators and wheel loaders that can be rented, financed, or leased. As you already know, buying means you pay for the full price of the equipment and get complete acquisition of the item. You get equipment ownership, warranty, and other services. However, businesses don’t always have the capital needed to purchase the equipment. Also, financing can put a strain on your company’s working capital. Moreover, ownership means you’re responsible for the repair, maintenance, and depreciation of the equipment. The second option is rent which works for shorter-term needs. Renting gives you a lower payment option with no responsibility for maintenance. However, it can have higher rental cost for long-term use and some highly demanded equipment are often unavailable to rent.
The third option is equipment leasing which is most preferred by contractors and construction companies. It is the process of getting the needed construction equipment for a fixed monthly payment. You don’t need to pay a down payment and get the equipment for a specific time. Leasing is the best option to get access to all the needed machines without breaking your budget.
Why Lease Construction Equipment?
Leasing doesn’t require huge down payments and expensive monthly instalments. The best equipment leasing services provide flexible payment options that can be tailored to suit your specific needs. It also has tax benefits as your asset will become a monthly expense on the balance sheet. Leasing gives you access to the latest equipment for a specific time. Whether you need a machine for seasonal use or want to try a new model, leasing gives you access to the equipment with flexible payment options. You can save money on the maintenance cost and get the latest equipment for a reasonable monthly payment.
No comments yet