These days, many construction companies are opting to lease their equipment instead of investing large amounts of money to buy it outright. There’s no wonder why- there are several benefits to this. In this article, we’ll take a look at three of the most common benefits of leasing instead of purchasing your equipment.
Lower Cost of Ownership
One of the major benefits of leasing construction equipment is the cost. When you buy new, you typically have to pay a large down payment and then make high monthly installments. However, this is not the case with most lease agreements. Often, leasing companies will work with their clients to find payment options that fit their personal needs.
The second benefit of leasing over purchasing is flexibility. These days, so many companies only need certain pieces of equipment short-term. A lease agreement can offer you the flexibility to choose a short-term lease to fit your own equipment needs and budget.
Monthly lease payment is going to almost always be lower than if you were purchasing the equipment. This means that you have greater cash flow. On the other hand, if you are purchasing the equipment outright, you end up having to hold on to equipment that is outdated instead of being able to trade up when an updated one comes out.
Consider Used for Fast Access
When you’re purchasing new equipment, certain pieces have a long waiting list. This is when leasing used equipment is a good solution. Plus, used equipment costs less than new.
The truth is, there’s no real rule that leasing is better or buying is better. The decision is entirely yours. You must do what works best for your company. Therefore, it’s critical that you take the time to do your research before making any decisions.