Several factors influence business owners in deciding whether or not it’s a good time to add another construction equipment to its existing fleet. These aspects can include the present economic situation and ongoing market conditions. Once you decide on purchasing an addition to your construction machinery, the next thing to think about is how to acquire such machinery- is buying or leasing the best option for you?
In reality, the answer truly depends on you if you have a problem deciding which option to choose, you have to think about your current situation to evaluate and weigh in your options. Consider your requirements and whether or not your plan on investing in new equipment for the long term.
To aid you in deciding, let’s go over the pros and cons of buying and leasing construction equipment.
Buying Construction Equipment
There are companies who prefer to purchase equipment, treating it as a long term investment and as a key component of a long-term capital strategy. One major advantage of buying equipment is the bundles that often come with it. These include warranty packages and free servicing or maintenance for a limited period, among other things. While these may be available for leases, the services may be limited. It also makes sense to buy equipment that’s expected to be used regularly. Buying construction equipment builds equity compared to leasing it.
Technology is constantly changing and the same could be said with several pieces of construction equipment. Whenever you buy construction machinery, it would take some time for you to purchase newer ones. Thus, when buying equipment, consider its features. This will save you from purchasing outdated equipment that can easily depreciate in value.
Leasing Construction Equipment
Perhaps the most attractive benefit to leasing construction machinery is how easy it is to upgrade to newer equipment. Compared to buying, leasing will be depending on your contract, enabling you to have access to the latest models. In addition, through leasing, you can spread your financial burden by monthly payments instead of a hefty one-time payment. Oftentimes, the amount you spent on leasing the equipment can actually be less than actually buying it. Leasing grants you the flexibility to choose other options.
Clearly, the first disadvantage of leasing is the absence of ownership. Leasing does not grant you equity since it is not considered as an asset. Perhaps the worst thing that can happen with leasing is the added charges during times of an equipment breakdown or repair-since some equipment for lease have limited support and warranty. Contrary to the previously mentioned advantage, when you lease for the long term, it can cost you more than actually purchasing it. Hence, you have to think about whether or not you’ll be needing the equipment for a long or limited time only.
Both buying and leasing construction equipment has its pros and cons. Depending on your requirements, decide on which option will benefit you. Renting is also another option you want to consider if you need equipment for a short amount of time. Otherwise, you can decide on purchasing or leasing it if you think you’ll be using it for the long term. To help you further decide, you can always consult with our experts at Modern Machinery Trading. We can also assist you in providing the best construction machinery that will benefit your business. Don’t hesitate to get in touch with us for any kind of information. You can reach us at +9714-2857711 or email email@example.com to request for a quotation.