Owers of construction firms have a tough choice, it’s very difficult to decide on whether you prefer buying or leasing construction equipment. For any construction business or contract to be successful, you should be able to acquire pieces of equipment at the appropriate time, and while at it, ensure that you have a budget for it. As you might be aware, a man is as good as his equipment. Having the right equipment can help to avoid delays. Additionally, most companies prefer to lease their equipment rather than purchase it. Below are ways to know if it’s better to buy or lease your construction equipment:
Why You Should Invest In Used Construction Equipment
Most construction companies prefer buying used equipment because it is more affordable. You can find used equipment that is of good quality, especially if it has been well-maintained. At half the price of the new one, then this might sound like a great investment decision. This guide on used propane forklifts helps to simplify the buying process as well as ways on how to make great deals. You stand to save more than you expected. There are however considerations that might come to play when buying such equipment second-hand. These include checking whether the source is reliable, quality, a physical inspection, and establishing a good relationship with the salesperson. Let’s take a look at the pros and cons of purchasing used construction equipment:
Pros
- Used construction equipment is cost-effective
- The buying process is not complicated
- They have a stronger resale value
- You have a variety of options to choose from
Cons
- It can be time-consuming
- Most if not all used construction equipment doesn’t come with a warranty
- Used equipment can be unreliable
- They have a shortened lifespan
Why Should A Company Buy New Construction Equipment?
In today’s world, you find a lot of construction going on everywhere, and if you have ever been to any construction site, then you know how important it is to have the right equipment at your disposal. This is especially the case when having to deal with heavy construction equipment. If you have future construction prospects then investing in a brand new forklift, excavator, or drill might come in handy during and after construction is done. Besides, you should always go for quality, fuel efficiency, the technology used, as well as whether the dealer is trustworthy. Once you acquire the right equipment, it can be the biggest asset to have or better yet, equipment that will give you great service for a long time. Here are the pros and cons of buying new construction equipment:
Pros of buying new construction equipment
- It saves time
- Helps to improve the safety of your workers
- Improves productivity
- It’s a great way to stay up-to-date with the changes in technology
Cons of buying new construction equipment
- They come with the stress of storage, transportation, and maintenance
- When the equipment is only needed for short-term use
- Excessive upfront costs
Why Should A Company Lease Construction Equipment?
Owning construction equipment can greatly help to boost productivity but it can also be stressful. There are storage issues, maintenance costs, and not to forget the fact that this equipment depreciates in value after every passing minute. This is why most companies prefer leased equipment. You don’t have to think about maintenance and storage. Once you are done with it, you take it back and that’s it! You don’t have to stress yourself over the nitty gritty. But like any other deal, you have to always think about the downside of what you are about to lease. Here are some of the advantages, disadvantages as well as what to consider before leasing any construction equipment:
Pros
- They are cost-effective
- Tax advantages
- Prevents equipment obsolescence
- There are easily approved and applied
Cons
- Higher leasing costs
- Most leased construction equipment might not be well maintained
- There are penalties if you don’t return the equipment at the agreed time
- You can’t make any changes to the equipment without the knowledge of the owner
All in all, you will want to assess the growth plan as well as the current situation of your company to determine the best construction equipment for your company and how such equipment will be beneficial to your company. Also, before making the final purchase decision, it’s always a good idea to evaluate your financial status. There are lending facilities that can help you on this front and in a way, take the load off your shoulders.
