A Guide To Leasing And Financing For Heavy Equipment
If you need to complete a large project for either personal reasons or for a business, then you will likely need some pieces of heavy equipment. However, you probably don't want to buy them outright, since you will likely only need them for a short period of time or even a single day. Therefore, you should consider the various leasing and financing options available to you.
Here is an introduction to both the different kinds of equipment that you can rent and the different options for payment:
What Kind of Heavy Equipment is Available for Rental and Purchase?
There are quite a few types of heavy machinery, but here are some of the biggest categories so that you can get a good idea of what you can lease.
- Excavation Vehicles: this category includes machines dedicated to displacing a large amount of earth. If you have a project involving the excavation of land that simply cannot be done by hand, whether it's due to the scope of the project or environmental factors, then consider using an excavator.
- Transportation Vehicles: machines in this category are dedicated to the transportation of large amounts of material from one location to another. This will generally be soil, rocks, or other solids, but there are specialized vehicles for moving gases and liquids. In many cases where you need an excavator, you will also need another vehicle to move the material to another location.
- Paving Vehicles: if you need to pave a road, then you'll probably need to acquire the services of a specialized vehicle. It is incredibly time consuming, if not entirely impossible, to pave a road without the use of one.
How Can You Finance Heavy Equipment?
There are several different types of financing which can be used in order to finance heavy equipment, and understanding the differences will help you make the right choice for your situation.
- Basic Operating Lease: this is essentially a rental situation, where you pay for temporary use of the equipment. You set up a predetermined time for the lease, such as a week or a single day, and then negotiate a price for the rental. After the lease ends, you can decide if you want to rent the machinery again, use a different financing option, or simply return the equipment.
- Installment Loans: this is the cheapest option for long-term usage aside from outright buying the machinery. When you are paying in installments, you simply pay a predetermined amount each month for continued usage of the machinery. After a specific number of months have passed, the machinery falls into your possession, as long as you paid what you owed in a timely fashion.
If you have other questions or need more help, try contacting a company that specializes in heavy equipment leasing to get more help.