Construction equipment forms a crucial part of a job site, with the right tools helping you take on a workload that would otherwise require extensive labor. With such importance comes the dilemma of whether to buy construction equipment or lease heavy equipment such as bulldozers and diggers and accompanying attachments like grapples and digger buckets. Below, we look at the advantages and disadvantages of each option.
Merits and Demerits of Buying Construction Equipment
Where capital is readily available, buying equipment comes with the benefit of convenience, allowing operators to master the workings of a single machine for overall productivity. In addition to this, buying also enables owners to enjoy the ease of access to the machines, cutting out the waiting period when equipment is in use elsewhere.
If funds are not readily available, buying equipment may not be the best option. Apart from the initial purchase cost, tools need maintenance, along with storage and transportation costs. Limited capital will also require you to settle for one tool as opposed to purchasing multiple pieces of equipment. This means weighing the benefits of your desired machine for both the short term and long term.
Merits and Demerits of Leasing Construction Equipment
If you require construction machinery for only a short time, it will be ideal to lease heavy equipment. This allows you to eliminate upkeep costs such as maintenance while also helping you reduce transportation expenses for the equipment. Leasing will also allow you to utilize different construction equipment at a go without incurring significant purchase costs.
Leasing occasionally has its downside, especially when your need to lease heavy equipment over a significant period. Your leasing costs will likely accrue over time, resulting in long-term expenses. Additionally, leasing comes with waiting periods when the equipment is in on lease to other businesses. This is also often followed by rushed work as you try to reduce your leasing costs. Lastly, some leasing companies may promise more than their equipment can offer, leaving you with poor quality work in the end.
Whichever option you prefer, getting the right financing solution will be your next course of action. Northgate Capital Finance can help with this, so give us a call today to help you secure the right equipment.