When you work in construction, you can’t get anything done without some heavy equipment. The problem with them is that they can be very expensive to acquire and maintain. It is a good thing that there are varying options out there for how you can get your hands on them. They will allow even those with the tightest budgets to get their operations up and running.
Here is a quick look at the choices you have and what their advantages are:
This is the dominant method of acquiring heavy equipment. There is nothing like owning something outright. That is why even if it is expensive, many construction companies opt to buy their equipment outright. But it is not as cut-and-dry as putting down the cash and getting equipment. There are several options available that will allow you to cut down on how much you spend on your equipment purchase.
The most common way to lower the price tag on the purchase is to buy used equipment. For example, buying high-quality used trucks in Arizona and other states can mean a big discount for you. It does have its downsides, though. Used equipment means you have to be careful to check them over and that you may not be getting the latest in technology.
Besides buying used, sellers are also aware of the large barrier to entry that buying new can have on people so they often try to help out. This is why they also offer instalment plans and help finance the buy with easy loans. They also point out the tax advantages of buying expensive equipment so that buyers would have one less worry. Warranties and repair offers are also often thrown in so that it is easier for a company to go the buying route.
For smaller companies that do not have the cash, a lease is a much more reasonable option. This allows them to use a piece of equipment for three to five years and then either the option of trading it in for a new model or to outright purchase the current one at the end.
This is actually one of your safer options as a company. It lets you get the latest equipment for a far lower price. The problem with a lease is that the agreement can be very restrictive. Since you still don’t technically own the equipment, you can’t do any modifications. Plus repairs and servicing can get pretty expensive.
If you really can’t afford a piece of heavy equipment, then you can rent it. The payment for this is usually by the hour and often comes with an operator fee. Besides paying per hour, you need to reserve the times you will be using the equipment since you will not be the only one using it. It’s a very restrictive choice but is the cheapest one available.
Different circumstances mean the best decision is not always a sure thing. You will need to evaluate your current situation and decide whether just renting will be enough or you have to buy the equipment. Hopefully, the information above help clear things up and help you make the right decision.