A lot of times, buying or leasing comes down to a landscaper’s preference, with cash flow being a significant factor. You can typically get into a lease for a lower monthly payment.
- Leasing provides owners with new equipment every two to three years, bonds services together in a single payment and allows the contractor to bid jobs more accurately as owning and operating costs don’t change – they must simply factor in fuel and operator costs. It also makes disposal easier as the leaseholder has no concerns over trying to sell the machine.
- Rental allows the contractor to pass the rental costs on to the job and places owning and operating costs squarely in the hands of the dealer. It ultimately reduces transportation/storage/carrying costs, but also may limit access to equipment based on availability.
- Owning equipment offers a variety of advantages and, depending on the type of equipment a contractor buys and how well it holds its value, they may be able to make a profit when they turn around and sell it.
Contractors can also talk with those who finance their equipment about deferred payments, skip payments or rent-to-own plans that best optimize new equipment purchases with peak cash flow.
Read more: Ways to Guarantee Equipment ROI