Before you decide to buy, lease or rent your next excavator, there are many questions to answer and pros and cons to consider. This article will help you decide which option is best for your business.
Need to finance your excavator?
The first thing you need to do is think about how, when, and for how long you will use your excavator. If your work expectations are long-term, leasing will be the best financing option, as it offers similar benefits to renting, but with the right to buy at the end of the contract.
Here are the main benefits of renting hydraulic excavators compared to buying them:
- Leasing allows you to use new or top-of-the-line equipment without having to pay a large amount of money up front.
- Forestry equipment leasing is a great option for companies that want to save money and avoid the hassle of owning and maintaining their own equipment. Under a lease, businesses can deduct 100% of lease payments as an operating expense.
- Leasing allows you to pay fixed monthly amounts, which makes budgeting easier. You’ll also avoid the unpredictable expenses that can come with owning this type of equipment.
How does leasing work?
Leasing can be a complex process. It’s important to work with a company, like Finco, that understands your industry and the specifics of your business and can help you get the excavator you need. Here are the two basic steps in the process.
1. Find the excavator your business needs
Your projects can vary in size and scope, so it’s important to match your selection to the specific job at hand. The best leasing companies, like Finco, finance all types of excavators, new and used, such as backhoes, mini excavators, hydraulic excavators, suction excavators, bucket chain excavators, among others.
If you’re unsure where to look for an excavator for your business, the easiest method to locate one is through a website that specializes in heavy equipment. There are many companies that list their excavators for sale on these websites, and you can browse through them to find the perfect match for your business. Be sure to check reviews of the companies before purchasing, to ensure that you’re getting a quality machine.
Additionally, you’ll want to think about the attachments that you might need for your excavator. If you’re planning on using it for a specific job, you’ll need to make sure that the attachments are compatible with the machine. You can usually find this information on the website of the attachment manufacturer. The most common excavator attachments that you can include in the leasing deal are: augers, buckets (standard or digging, severe, narrow, trenching, among others), hammers (mil, chisel or blunt), flail mowers, grading blades, grapples, rippers, thumbs, mulchers or rakes.
2. Work with a leasing company
Not all businesses are the same: each has its own unique needs. A good financing company will work with you to determine the best leasing option for your projects. Nonetheless, there are a few things you should keep in mind when considering excavator financing:
- Leasing contracts usually last from two to six years. You need to be sure that you will need the equipment for that length of time.
- Know whether or not you are responsible for maintenance and repairs during the lease.
- Make sure you understand the terms of the financial agreement before you sign anything.
- Some heavy equipment leasing companies offer lease-to-purchase options. If you are interested in this option, be sure to check before you sign your lease agreement.
- Make sure your company can afford the monthly payments.
On the other hand, the best leasing companies, such as Finco, have access to special and very advantageous programs for companies in different industries.
How to find the best leasing company to finance your excavator?
As mentioned above, leasing can be a great way to get the excavators you need for your project without having to buy them outright. It can also be a more affordable option than buying.
However, not all lenders offer the same financing terms. Here are some tips for finding the best company for your needs:
- Do some research and ask for recommendations. If you know other contractors, ask them who they finance their equipment with and if they are satisfied with the service. You can also search online for heavy equipment leasing companies and read customer reviews. Once you have a list of potential companies, contact them and ask for quotes and payment scenarios. You can contact us and get started with Finco!
- Be sure to compare not only the price but also the terms of the lease. Some companies may require a longer minimum financing term, for example, or charge higher fees for early termination. Make sure you understand all the terms and conditions before you sign anything.
- Don’t be afraid to negotiate. If you have good credit and a good history with the company, you may be able to get a better price for your lease. Never hesitate to ask!