Heavy Equipment Loan vs Lease: Which Is Right for You?
Loaning or leasing heavy equipment is one of the easiest ways to get machinery for your project or business. You can buy these machines right away, but they may not be cost-effective in the long run. Equipment sellers sometimes provide loan or lease choices. Here are the differences between the two:
You can buy new or used heavy equipment using a loan. This method allows you to use the equipment on a pay-to-own basis. A heavy equipment loan is great for construction companies that are just starting. Applying for a loan gives you the option to have a manageable payment plan.
A down payment is usually required for a loan, typically paid with cash, a trade-in, or rental equity. The remaining sum will be paid through installment; many lenders provide flexible modes of payment. Though these payments may be greater than the cost of a lease, you still own the equipment, and you can use it whenever.
An equipment lease is the better option if you like the benefits of newer machines and technology or if you want to spend less. If you only need the equipment for a limited period, this one is better than applying for a loan. This method is also easy to manage, as you don’t have to pay a huge amount immediately to use equipment that you’ll upgrade in due time.
You don’t pay for a lease to buy the equipment; you pay for the time you utilize the equipment. There are flexible return and purchase options that allow you to return or use the equipment for a more extended period. Sometimes, you even have the option to acquire the equipment with the end-of-term payout of the lease if you plan to buy it.
Rent Heavy Equipment Today
Looking into new heavy equipment for your project or business can be time-consuming, but acquiring it should be straightforward. Aside from gathering information about the features and specifications you’re looking for, you should also consider your payment options. Contact Rabern Rental Center in Amarillo, TX if you have any questions regarding equipment rentals.