Posted on: 25 March 2015Share
There are several advantages to leasing heavy equipment rather than purchasing the machinery that you need, even if it is used on a regular basis. Benefits range from financial to logistical to practical for leasing equipment, and include:
Financial benefits of leasing heavy equipment
Purchasing heavy machinery requires a large cash purchase, or monthly payments that must be paid whether the machinery is being used or sitting idle in a storage yard. Insurance payments must also be added to the cost of heavy equipment.
Leasing heavy equipment can be done according to need, which allows contractors to pay for equipment only when it is required. In times of economic recession, or in extended slow periods, companies aren't burdened with monthly payments that effect their cash flow.
Logistical benefits of heavy equipment leasing
When heavy machinery is leased, the leasing company can deliver it directly to a job site. This eliminates the responsibility for the contractor, who must either own or lease a flatbed truck or low-boy trailer and have a driver that is qualified to deliver the equipment. Weight restrictions often require a driver to posses a Class A license to deliver heavy equipment, and many companies have no drivers with this type of permit.
Owning heavy equipment also requires storage space for when the equipment is not in use for extended periods of time. It also may demand that the equipment be moved around constantly if storage space is limited and access is difficult. Theft and vandalism may occur in unsecured storage areas.
Practical benefits of leasing heavy equipment
Owning heavy machinery means keeping it maintained and repaired, sometimes at substantial cost. Heavy construction equipment especially takes a beating and needs repairs, both for continued use and for mandatory inspections.
Equipment that is idled because of mechanical issues or failure to pass an inspection may cause a contractor to fall behind schedule while waiting for a heavy equipment service company to repair their equipment. Heavy equipment leasing companies have qualified maintenance mechanics on staff that are responsible for repairing and maintaining their equipment at no charge to the customer who is leasing the equipment.
Ultimately, the decision whether to buy or lease heavy equipment will depend on the individual needs of the user. Those who will use equipment continually and have no issues with transporting or storing machinery may choose to purchase some equipment and lease when additional needs arise. Talk with a equipment leasing company, like Westar Financial Inc, to see if this option is best for you.