Having the right construction equipment available vastly increases your team’s capabilities. Forklifts help move large amounts of material from one location to another. Telehandler boom lifts make hard-to-reach locations more accessible for workers. Since these machines are so rugged and durable, they’re significant investments for businesses. Luckily, there are multiple paths for acquiring the right equipment for your needs. Leasing is one way to get the right construction equipment and stick to your budget.
Construction equipment can be purchased outright or rented for short periods. Leasing is a third alternative option that allows you to have the equipment you need on hand. What makes the process different from a short-term rental is that leased equipment is kept and used for an agreed-upon period, usually at least one year.
Leasing is similar to renting in that it requires payments at specific intervals. At the end of the agreement timeframe, you can purchase the equipment at a cost determined at the start of the lease period or choose new equipment to lease.
One of the clearest benefits is that you can preserve business capital and spread costs over a longer term. Rather than purchasing an expensive piece of equipment with one lump sum, you can lease that same equipment for a lower monthly cost, freeing up money for other parts of your business. If you need to keep short-term costs down but still need to acquire machinery, leasing is worth considering because it’s often more feasible to build monthly payments into your budget instead of recovering from a sizable one-time expense.
Leasing might also be preferable if you need to change out equipment periodically. If you purchase an expensive specialized tool, maintaining and eventually replacing it can be difficult—and even more expensive. Alternatively, leasing equipment makes it yours for a limited amount of time; then, you’re free to purchase equipment you’ll get more use out of or lease newer equipment.
Buying brand-new equipment right away also means you might end up not being properly aligned with your team’s needs. Then, you’ll have to deal with the hassle of selling or trading in the machinery. Leasing is more flexible, so you’re not committed to equipment you only need for a limited period or find you aren’t using as much as you originally thought.
Reducing commitment to specific machinery is also appealing if your needs change based on the project. It’s also beneficial if you want to try before you buy because you can use the equipment for an extended period and see if it matches your needs before purchasing at the end of the agreement.
Deciding between purchasing and leasing often comes down to your specific short- and long-term requirements and available resources. Leasing a machine and purchasing it when the agreement expires will likely cost more than outright buying it, but the payments are spread out over time. Having the option to lease something else instead provides added flexibility.
Start by considering what tasks you need to perform and which types of equipment are likely to get the job done. Here are some helpful questions to ask:
Consider whether your business has the cash to make a one-time payment to purchase equipment or if you need to spread out the cost and make monthly payments. Leasing makes sense if a large up-front investment doesn’t work for you. Similarly, leasing is likely to be a better approach if you value flexibility and the option to upgrade or change equipment over time.
When leasing is the best option for your heavy equipment needs, Aerial Titans is ready to help. Not only do we have experts to help match you with the right rigs, but we also have competitive financing options. If you’re looking to lease construction equipment, we’ll walk you through the processes and make sure you’re fully informed about the payment terms, overall costs, and purchase prices.
