Whether to Buy New, Used, or Rent Heavy Equipment

Whether to Buy New, Used, or Rent Heavy Equipment

When it comes to buying new, used or renting equipment, you&#;ll want to consider aspects such as usage, availability, types of projects and budget. You may have signed a few big contracts you need to prepare for, want to expand your fleet to maximize your capabilities or even replace outdated or broken machinery.
Whatever the reasoning, there are pros and cons to all sides depending on your specific requirements. Once our experts at Thompson Tractor help you evaluate the situation, abilities and finances of your business, you can select which will be most advantageous to boosting your company&#;s bottom line. From excavators, articulated trucks and wheel loaders to skid steers and crawler dozers, we have you covered with a personalized solution.

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What to Consider Before Making a Decision

Renting vs. buying heavy equipment is circumstantial to different business owners, fleet managers and construction project supervisors. It&#;s not a process that you should jump into, but one where you should take time to think about several factors such as:

1. Your Financial Situation

The first major question relates to heavy equipment financing and whether you have enough capital to buy. If not, renting is a more suitable option. You can also project the cost of a one-time high upfront cost vs. renting over a long period of months or years. From a financial standpoint, owning heavy equipment means you could see a high return on investment if you decide to sell later on.

2. The Cost of Buying vs. Renting

The price of ownership includes maintenance, operating costs, insurance, transportation, licensing fees and more while renting is an inclusive cost. While both owning and leasing include fuel investments, it&#;s vital to consider the upfront vs. continual payment process.

3. Job Frequency and Duration of a Project

A construction project length can be the deciding factor in whether to buy or rent heavy equipment. If you&#;re looking for short-term, specialized machines, renting is your best bet. However, a downfall is running the risk of not taking full advantage of the equipment if the project or schedule changes and the machine is unused.

Long-term projects, jobs requiring various pieces of equipment or having several gigs lined up are great reasons to buy new or used machinery. While rental costs increase as time goes on, investing in multi-purpose machines that can be used for dozens of tasks is a definite asset to have on site.

4. Availability and Use of Machines

Another consideration is how much you will need the machines. Owning allows you to have heavy equipment at your fingertips 24/7 to jump on new projects. It can help your business stay ahead of the game when changes in your schedule or projects occur. You will experience less downtime as well.

But if you plan your projects well, renting can be a great tool to tackle several smaller tasks at once. It may not make sense for you to have access to particular machines every second when you only need them for several weeks or months at a time.

5. Management and Inventory Control

Heavy equipment cost management comes down to handling logistics, storage, insurance, maintenance, service, transportation and other factors when buying. Buying gives you flexibility and freedom, but it also comes with more responsibility on your end. You can save money over time by purchasing equipment, but if you have more short-term tasks, renting is a more reasonable investment. And if you use it for fewer months than expected, selling is always an option. Calculate your heavy equipment fleet management capabilities and expectations before making a decision.

6. Your Heavy Equipment Needs

When it comes to your current fleet, you should be asking questions including:

• Does renting cost more than owning in the long-run?
• Will leasing delay projects?
• Do you need immediate solutions?
• Is the value of renting low compared to the total cost of a project?
• Do you need to replace any current machines?

Understanding what your existing operation looks like and how you want it to look in the future can help you decide between buying and renting.

7. Transportation Costs

Renting vs. buying also involves transportation costs that can affect your business. Consider the effort of driving, loading and unloading for each job. Does renting or buying make more sense? Do you operate within local vicinities or commit to interstate jobs? Do you have the finances and trailers to cover transportation costs?

When you go through the process of asking critical questions, you will know how an investment or leasing agreement will affect your company. Once you have a clear idea of how to approach your needs, you can make a decision based on your particular situation. Choose from new, used or rented heavy machinery such as:

Thompson Tractor experts can help you decide when to invest in new machines, buy used heavy equipment or choose rental solutions. We support you in selecting the option that best fits your company as well as which machine or fleet of equipment will suit your exact range of projects.

When to Buy New Heavy Equipment and Which Pieces of Equipment to Buy New

Knowing when to buy new heavy equipment comes down to a few simple circumstances. As part of our heavy equipment buying guide, consider investing in new machinery when you want the following:

• Full control over the use and maintenance of a machine
• The best quality equipment available with the latest technologies
• A machine ready to go without waiting

If you&#;re a business owner, fleet manager or construction project manager with an extensive line of projects, buying new equipment gives you control over how you use it, how often and how you maintain the machine. When you need to service your fleet, rely on Thompson&#;s support agreements to keep your equipment running at its most efficient and highest levels. Opting for modern devices gives you access to efficiencies and fleet management software as well.

The total price to own heavy equipment may be a significant upfront cost, but over time, you&#;ll pay less than if you rented. Financing programs help to make it more affordable as opposed to a massive one-time cost. The heavy equipment return on investment is also high, especially if you decide to sell it in the future.

Pros of purchasing new equipment include:

• More economical in long-term perspectives
• Higher ROI
• The flexibility of having the equipment when needed
• Less downtime
• Tax advantages

Paying for what you want without having to worry about leasing regulations and paperwork is a great advantage for your company. You can also determine maintenance regulations as opposed to abiding by leasing regulations. If you operate the equipment all the time, have the resources to maintain the machinery and have storage space, buying is your solution.

Along with heavy equipment tax deductions, buying creates less downtime of your operations. When you need an excavator at one site and a dozer at another, you don&#;t have to wait for a leasing agreement. Grab your equipment, transport it, and your workers are on their way. Our machines can work through a variety of jobs where you can add attachments and accessories, making them multi-purpose assets.

When to Buy Used Heavy Equipment and Which Pieces of Equipment to Buy Used

Often the term &#;used&#; denotes a negative connotation &#; but it&#;s far from the truth when discussing Thompson certified used heavy equipment. We recommend buying used machinery in situations such as:

• Needing an additional piece of equipment that&#;s outside of your budget
• Having the machine available when you need it
• Working standardized jobs where a single piece of equipment may be useful for multiple responsibilities
• Receiving certified used equipment

You can trust your Thompson Tractor dealer to deliver you well-maintained used pieces of machinery that can even be more economical than new equipment. The best used heavy equipment to buy is cost-effective in the long run if you plan on using the machines on a daily or weekly basis. We maintain good quality used heavy equipment that&#;s up to par with safety regulations as well as the latest tech to give you an advantage.

Used pieces of machinery are an incredible alternative to new if you don&#;t have the necessary finances. They are nothing short of top-level machines. Here&#;s how to calculate the cost of owning new or used heavy equipment:

• Upfront cost + ownership costs &#; resale value = total ownership cost
• Total ownership cost/ownership period = cost per period (day, week or month)
• Total ownership cost/hours used = cost per hour

If you use a machine more than 60 or 70 percent of the time, you should buy new or Cat® certified used heavy equipment. In other words, if you use it for about 175 hours over eight months of the year, buying will be more cost-effective.

When to Rent Heavy Equipment and Which Pieces of Equipment to Rent

Like each option listed above, there are pros and cons of renting heavy equipment. If you are looking to rent heavy equipment in Alabama, we suggest it&#;s a wise move when your company is in the following situations:

• Not using the equipment more than 65 percent of the time
• Working on different job sites and projects
• Wanting to remain financially flexible
• Trying to avoid maintenance and other ownership costs
• Wanting to test-drive new technologies

Leasing heavy equipment is in your favor by granting you access to the newest machines on the lot. With the latest technology at your convenience, you can feel assured you&#;re working at some of the highest levels. The cost of renting is beneficial if you consider the usage ratio for one-time projects. Renting machines can be ideal based on your specific needs at different times throughout each season and project.

Advantages of heavy equipment rentals in Alabama include:

• A lower upfront cost that often doesn&#;t require a down payment
• Access to more machines when needed
• Ability to work with the newest, fastest and safest equipment
• Insurance, maintenance and transportation handled by a third party
• Predictable monthly expenses that help your company budget for future purchases and expenses
• Enables you to keep up or surpass competitors by having the latest tech without overspending
• Capability to test drive new equipment to see if you want to make a future investment

Many machines include telematics that can read productivity and show you how to reduce costs while illustrating operator behavior and training opportunities. You can use the tech on each rented machine rather than sticking to what you have that may be outdated.

The cost and convenience of renting are also beneficial. If you can&#;t maintain your equipment or don&#;t have facilities to store them, we can take care of it for you. You also can choose the exact size of machine for your various projects &#; which can save you money because you won&#;t waste gas or exert more power than necessary. With leasing opportunities, you don&#;t need to know how to fix the machine, only how to operate it.

Calculating the cost of renting includes:

• Rental rate per hour, day, week or month x rental period + pickup and delivery fees = total rent cost
• Total rent/rental period = rent cost per period (day, week or month)
• Total cost/expected hours of use = rental cost per hour

Contact Thompson Tractor

Thompson Tractor is a full-service sales, parts, service, rental, tech, fluid analysis and power solutions operation &#; everything you need as a construction contractor. We offer advanced technology and comprehensive parts and maintenance to help boost your operations forward. As an industry leader, we are also local to Alabama and Northern Florida.

Rely on Thompson Tractor

Get the quality equipment you need when you need it. View our equipment online or contact us for fast local service.
Contact Us

Our team gets to know your needs and are here to support them. With 60 plus years in the business, we partner with you to build a relationship that lasts through each new stage of your growing business. Thompson Tractor professionals are reliable, trustworthy, experienced and knowledgeable to take care of your buying or renting requirements. We are your go-to heavy equipment dealer in Alabama. You can reach out to us online. If you know the solution that best fits your position, you can skip ahead to shop heavy equipment on the Thompson Tractor site whether you are buying new, used or renting machinery.

 

If you&#;re thinking about getting a track loader for a landscaping project, you know that it is a major investment and can transform your operations for good. A track loader is a compact multi-terrain loader and a heavy piece of equipment that you can use for landscaping jobs.

What&#;s unique about the track loader is that it comes with tracks rather than wheels, which allows you to navigate uneven terrains easily. Landscaping businesses often wonder, &#;How much does it cost to buy a track loader?&#; and &#;how to finance a track loader?&#;

Today, the minimum wage continues to rise, and it has become more expensive and outright difficult to hire professional crew members every day. In fact, workers in the landscaping space often quit on short notice when they want better pay. With a track loader, you&#;re bound to need less labor and increase your output at the same time.

In this article...

Let&#;s break down the details of buying a track loader and how it can be within your reach through financing:

When to Use a Track Loader

A track loader is an efficient and robust piece of equipment that landscaping businesses can use to perform various jobs and save valuable time and resources. Depending on a track loader&#;s attachments, landscaping businesses can perform various applications. It is no wonder a track loader has become highly versatile equipment in the market.

Here are some use cases of a track loader in landscaping:

Grading

You can use a track loader that comes with a grading attachment to level a specific ground and create an even and smooth surface for different landscaping projects, like installing pavers and laying sod.

Excavation

You can use a track loader to dig trenches, excavate soil, and create ditches for irrigation and drainage.

Site Preparation

Contact us to discuss your requirements of Loader attachment manufacturer. Our experienced sales team can help you identify the options that best suit your needs.

You can use a track loader to remove vegetation, level the ground, and clear the land for different hardscaping projects.

Material Handling

You can use a track loader to move and distribute materials, like gravel, mulch, and soil throughout a landscape site.

Demolition

You can use a track loader to demolish structures, like outbuildings, retaining walls, or old patios.

Snow Removal

You can use a track loader with a snow blower or blade attachment to clear out ice and snow from parking lots, paved areas, and driveways.

What Makes a Track Loader for Landscaping Beneficial?

A track loader provides versatility to landscaping businesses in handling different jobs, like hauling, grading, and digging. Landscaping businesses can use a track loader in several weather conditions, whether it's snow, mud, or rain. Most importantly, financing a track loader inevitably boosts productivity and efficiency and allows you to navigate uneven terrains better.

Prices for Buying a Track Loader

You don&#;t want to generalize the cost structure like other landscaping equipment. Regarding a track loader, the cost comes down to many factors, like size, model, optional attachments, and built-in features. Still, estimated costs to buy a new track loader can involve:

• The price of a small track loader can range from $30,000 to $50,000
• The cost of a medium-sized track loader can be from $50,000 to $80,000
• The cost of a large track loader can be higher than $100,000

When it comes to buying a used track loader, the price is much lower. But understand that the overall cost is age, condition, and other variable factors. The good news is that you can finance used or new equipment easily. With Beacon Funding, track loader financing has never been this easier.

When buying a track loader, your focus of consideration should revolve around its functional capabilities, features, and whether or not it passes the productivity test. Besides, track loaders are a huge investment, and you want to ensure all the features and attachments are exactly what you need to run solid operations.

Due diligence makes a huge difference when buying a track loader. It is ideal for landscaping businesses to research and compare the cost structure of track loaders from different dealers and manufacturers to choose the one that suits their budget and operational needs.

Lower Upfront Costs by Financing

Financing equipment allows landscaping businesses to upgrade advanced and contemporary equipment. With equipment financing, you don&#;t have to deal with fixed business expenses. You can finance the reliable equipment you need to perform various landscaping jobs today.

Financing a track loader allows you to break down the cost. It means you can make even the most expensive piece of equipment manageable; all it takes is to break it down into low monthly payments. As a result, it helps landscaping businesses reduce their overall costs.

If you finance and get your hands on a new track loader, you can take on more challenging projects. Besides, financing better equipment will help you complete landscaping jobs faster. With equipment financing, you can use a track loader to earn revenue and utilize the funds to make low monthly payments.

Why Finance a Track Loader?

Conserve Cash

Landscaping businesses understand their dependence on tools and machines to tackle complex and demanding projects. Financing minimizes upfront costs and allows you to cover the amount in low monthly payments over an extended period.

Equipment financing provides landscaping businesses immediate and direct access to a track loader to perform different jobs immediately. So, if you decide to finance a track loader, expect to conserve cash. You can use this saved cash to meet other business needs, such as payroll and marketing.

Generate Revenue While You Pay for It

There is no need to wait up to save money when you can finance a piece of equipment to perform several jobs and start earning revenue. Once you generate enough money, you can easily pay your low monthly payments.

Financing a tack loader is a great way to generate revenue and take your time to pay low monthly payments and earn a profit. It would be fair to state that financing is a cost-effective and practical option for landscaping businesses to save money and acquire a track loader.

Customized to Fit Your Specific Needs

When you finance a track loader, you can make different customizations to meet your specific business needs. As a landscaping business, you can select a specific loan term, repayment schedule, and a suitable down payment that fits your budget.

Fixed Low Monthly Payments

In , landscaping businesses usually deal with challenging budget issues. And when equipment financing comes into play, business owners can pay a fixed monthly payment. This ensures that business owners don&#;t break their bank account and make monthly payments based on their plans and budget limitations.

Equipment financing is also a perfect way to avoid payment fluctuations and any other costs that might impact your cash flow.

Tax Benefits

For most jobs, equipment financing leads to tax benefits. It allows landscaping businesses to deduct interest payments from their taxable income. In short, financing a track loader is favorable to the buyer. For a landscaping business, it is an effective and uniform approach to lower the tax burden and save more money for the company.

Estimate a Low Monthly Payment for a Track Loader

Affordability is the main factor that propels most landscaping businesses to finance a piece of equipment like a track loader. You can use a free and dedicated equipment financing calculator to estimate your monthly payments for a track loader or any other landscaping machine.

Sooner or later, your landscaping business will need to expand and you&#;ll need the equipment to run scaled-up operations and meet higher demands. Since using redundant equipment can compromise productivity, opt for modern and advanced equipment by financing.

This option also allows you to explore more equipment you need to optimize your landscaping operations. You can download the free mobile app now. It is high time to cut out the guesswork and wonder whether or not you can afford a track loader.

Get More Done with Less Labor, Finance a Track Loader

While a track loader is an incredibly valuable asset for any landscaping business, it is crucial to consider all the related costs before owning, operating, or financing one.

Whether it&#;s added features, brand, or size of a track loader, consider additional costs, including operating and maintenance expenses to figure out the total cost.

Remember, additional accessories and features, like special GPS technology or buckets, can impact the cost structure of a track loader.

Once you fill out a free application in a few minutes, you can expect to get approval within the next 24 hours. Beacon Funding makes sure its financing process is fast, simple, and flexible for all sizes and types of landscaping businesses.

If you want to buy a track loader and don&#;t want to deal with single upfront costs, your best option is financing at Beacon Funding. In hindsight, part of the process of growing any landscaping business is to make the most out of equipment financing.

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