Nowadays, more and more business owners in the construction industry are leasing the equipment that they use rather than buying it. Even though this does have some advantages, in some situations, buying equipment is still the better choice. These are a few signs that you should buy your construction equipment instead.
1. You Want to Maintain Some Equity
Construction equipment, much like cars, can lose value over time, since newer and "better" equipment comes out all the time. However, if you own your own equipment and take good care of it, you do maintain at least some equity. Even though you might not be able to sell your equipment and get all of the money that you put into it back, you can at least get some cash if you sell it, or you can trade it in for newer equipment later. If you lease, the money that you spend on the lease agreement is lost.
2. You Want to Avoid Complicated Contracts
When you buy construction equipment, the process is pretty easy. As long as you have your financing in line or the cash on hand to buy it, you don't have to worry about contracts. With leased equipment, however, you do. You have to worry about carefully reading over the contract to make sure that you won't get charged for anything unexpectedly at the end of the lease term, and you have to worry about whether or not your lease term is the right length of time for when you will need the equipment. If you want to avoid complicated and restricting contracts, buying might be a better choice.
3. You Want Full Control Over Maintenance and Repairs
Some people say that one of the main perks of leasing construction equipment is the fact that you do not have to worry about your own maintenance or repairs. Although this can be beneficial in some ways, it can be a pain in other ways, too. For example, if you find yourself in a bind and want to have the equipment worked on as quickly as possible so that you can get back to work, the leasing company might not get the repairs done as quickly as you would like. Owning your own equipment means that you have full control over maintenance and repairs, however.
As you can see, there are a few situations in which buying construction equipment rather than leasing it is smart. If any or all of these three things apply to you and your construction business, you might just want to look into buying new or used equipment for your company.