Small construction companies or contractors trying to compete with large companies can sometimes struggle with not having the budget for equipment they need. Buying a new piece of construction equipment is often difficult for small companies, but leasing the equipment may be more manageable financially. It may offer some benefits to the business that may be worth considering.
Short Term Leasing
Sometimes that best option for leasing a piece of equipment is a short term lease that allows you to use the equipment for a specific amount of time. This type of construction equipment leasing allows the company to use the equipment for a particular job and return it to the company leasing it when the work is complete.
Short term leases often run longer than rentals and construction equipment leasing companies typically work with larger equipment like backhoes, excavators, and specialty equipment that you will not find at most equipment rental companies. These machines are expensive, and for the small contractor that is just starting out, they may not be within reach. Using a construction equipment leasing company can reduce the cost enough to make it possible for the company to use the equipment short term.
Long Term Leasing
Leasing construction equipment is a lot like leasing a car, truck, or even a property. If you are working with a construction equipment leasing company to lease large machines, a long term lease can have some benefits for even large contractors or construction firms. Because the wear and tear on this kind of equipment can shorten the machine's life span, buying new equipment is sometimes hard to justify.
Depreciation of the equipment and a reduction in value can make it challenging to resell used equipment at a price that makes sense for the seller. Add to that the increasing cost of maintenance as the machine ages, and you can quickly see how leasing equipment and replacing it every couple of years might be more cost-effective.
Warranty and Repairs
In some situations, the construction equipment leasing company may help offset the cost of maintenance and repairs on the equipment while you have it. You need to discuss this when negotiating the lease and make sure you have a clear understanding of what the company will cover and what you have to pay for.
Essential maintenance like oil and filter changes, lubrication, and changing the air filters will most likely be your responsibility. Still, if the equipment has a significant failure that is not related to how it is being used, you may be able to get the leasing company to help with the cost of repair if you have worked out the details ahead of time.
For more information, reach out to a construction equipment leasing company today.