When the time comes for your business to seek out construction equipment for sale to replace or enhance your machines, many considerations need to be thought through to ensure the best outcome for your time and money. Investing precious capital into an unworthy purchase can prove very costly for your company! One Source Equipment is proud to be your trusted source for construction equipment in Throckmorton for projects all across North Texas. Our experienced team has the resources and connections to find the best outcome for your specific needs. As a Genie Lift® authorized seller, we are able to provide a wide range of boom lifts and scissor lifts to help you gain access to future success.
Whether you plan on purchasing new or used construction equipment, it will be important to consider the financial aspect of making such a large investment. Today, we’ll briefly highlight a few key considerations for your construction equipment purchase. When you’re ready to find the best product for your price, be sure to reach out to the One Source team today!
Determining Financial Options
Today’s marketplace allows for a wide range of financing options for companies needing assistance in funding their purchase. To begin, you should consider the demands and challenges of your project. There are three basic options to choose from to deliver the best fit for your unique situation. If you’re unsure which approach is best, it pays to speak with an industry expert for assistance!
Renting
One popular approach for companies looking for more flexibility than sustainability is renting construction equipment on an as-needed basis. Contractors can utilize the exact tool for their task, return it, and move onto the next project free of the maintenance and financing demands associated with upkeeping your machines. Rental companies often have a wide range of construction equipment types, styles, brands, sizes, and so on. If you are unable to provide transportation services for your heavy equipment, many rental providers can arrive on-site to take everything away.
Keep in mind, though, that the convenience of renting comes at a higher cost. You can rent the equipment for varying amounts of time, but keep in mind that most companies offer price breaks for longer rental periods. If you only need a skid steer for two weeks, you may end up paying the same price as a full month!
Buying
Purchasing your construction equipment provides all of the benefits expected of complete ownership. This machine is now yours to clean, paint, upgrade, maintain, and repair. Many construction companies purchase their new or used construction equipment for the most convenience in terms of usability. Since it is your machine, you can use it as you wish to get the job done. Keep in mind that buying results in a much bigger financial demand up front for the full purchase. After this point, you should expect long-term cost advantages by avoiding rental rates.
Buying construction equipment is also tax deductible, as are the maintenance, repairs, and transportation costs associated with operating your vehicles. This may prove very valuable for companies feeling the pressure of various operating costs. One Source Equipment can work with you to find the most affordable solutions for your needs, so be sure to call us for help in determining whether or not you should buy!
Leasing
This option combines a few advantages of both renting and buying your new construction equipment. Oftentimes, the purchase will give you cost flexibility up front, as leasing is more affordable initially. Leasing options are also flexible for most clients, delivering differing payment options and terms to meet your needs. A capital lease, for example, enables you to act as the owner, operating the equipment while maintaining it and paying for taxes and insurance needs.
In many cases, leasing offers the option to purchase the construction equipment at the end of the term for the most affordability. This industry depends on a number of factors, including the changing of the seasons. Slower business can be alleviated with suspended or reduced costs. In other cases, companies may not be able to finance their equipment early on before revenue streams are available. One strategy includes paying larger payments later on. In any case, a lease may prove ideal for meeting your needs.
Keep in mind that interest rates are often higher for leasing compared to purchasing, so do your research before signing on the line!
Discussing Cost Feasibility
In all decisions, one question holds the most influence — can we afford it? Financing new or used construction equipment can prove to be a boon to your production, increasing quality and efficiency to create more lucrative outcomes for your business. Companies across all sectors must determine the feasibility of making this big purchase. Failing to properly leverage all of your finances may result in high payment costs that are causing more harm than good for your company!
Once you have decided on a financing option and have received the terms, it’s important to see how these numbers work with your current budget. Contract lengths, interest rates, and other factors all need to accounted for in coordination with your current operating costs. While this may sound like a complicated process, a number of tools are available online. You can also speak to your local construction experts for assistance. One thing many businesses focus on is the preservation of their capital. How much money you have to spend can vary from year to year, making it important to update your spending strategy for the best results.
There are many things to consider when investing in new or used construction equipment, but taking the proper precautions can help you to find a productive and lucrative outcome. Next time, we’ll conclude our look into financing considerations by discussing the value of correcting any financing problems and the benefit of enacting a quality long-term plan. If you’re looking for construction equipment in the Throckmorton area, One Source Equipment is here and happy to help. Contact us today to see find affordable and equitable options for your project needs!
