Companies that require equipment and machinery basically have two choices: either buy it (often by getting a loan from a bank), or lease it. The choice isn’t always an easy one, as a company has to consider capital expenditures, interest rates, maintenance fees, staff and training, and possible tax advantages at the end of the year. The whole process can get a little confusing. Following are some reasons why leasing equipment and machinery makes more sense than purchasing it:
Construction is a tricky business
Ask any contractor with sufficient experience, and they’ll confirm it: you never know what your next project will be, and each project has its own unpredictable scenarios. Your next project may need specialised equipment and well-trained professionals to get the job done; your current project may turn out to be more complicated than expected and require machinery other than what you currently have available.
What’s more, the construction business is constantly affected by outside factors largely out of your control, which means that the ups and downs of market conditions greatly affect how well the equipment is used. Buying equipment only to store it in a garage for half a year means paying for unproductive assets.
Leasing equipment means paying only when using
When market conditions are down, you won’t be bothered with paying for machinery when it’s not productive – unlike when you buy it. It also means you don’t have to make a large down payment.
Leasing equipment means getting top quality
When purchasing machinery, you need to be sure you have the funds, tools, and properly-trained staff to maintain it. On the other hand, you don’t have those kinds of problems when leasing equipment. Furthermore, you can always exchange the equipment for an up-to-date model when leasing.
Leasing equipment means getting exactly what you need
When you purchase machinery, you are stuck with it; when a job requires specialised work done outside of the machine’s ability, you’re left scratching your head. When leasing, you are sure to get the equipment you need specifically for the job at hand.
Leasing means not having to worry about when to sell
Every machine has a life – its usefulness deteriorates significantly as it gets older. This means the value of the machine drops significantly after just a short while. Furthermore, advances in technology and changes in construction methods rapidly make some machines obsolete. Leasing means you never have to think about when – and at what price – to sell.
Purchasing equipment may give you the security of ownership, but in most cases, the hassles associated with it really aren’t worth the acquisition. Considering the high price of construction machinery, the rapid loss of value, the variable nature of the market, and the rapid changes in construction practices, leasing is a more practical option. If you are thinking of looking for plant hire services for specific areas like plant hire Chorely, you should look for those which can give you a good service with great expertise as well.
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