Renting construction equipment has emerged to be very crucial in construction industry. With lower cost of ownership and increasingly flexible payment options, leasing construction equipment offers a number of distinct advantages.Construction review online looks at why the trend is gaining currency across the continent. There are advantages and disadvantages associated with each choice of buying or leasing construction equipment for your business to be successful.
Lower total cost of ownership
One of the biggest advantages of leasing is the lower cost of ownership. While buying new equipment often requires large down payments and expensive monthly installments, lease agreements almost never require down payments and leasing companies often provide a variety of flexible payment options that can be tailored to fit their clients’ specific needs.This is more helpful to the companies that are start ups and don’t have enough funds to buy new equipments.
Greater flexibility in leasing
A second important advantage has to do with flexibility. With so many construction projects on the go, many companies require specific equipment on only a short-term basis. With lease agreements, construction companies have the flexibility to choose the lease term that best fits their budget and equipment needs.The same cannot be said about buying construction equipment. Indeed, if a construction company purchases a piece of equipment outright, they’re stuck with it, even if it becomes obsolete.
Consider used yellow iron for fast access to equipment
Certain types of construction equipment can have a long waiting list when buying new.In such cases, leasing used construction equipment offers a quick and viable solution.This will help contractors who have got new contract or got more jobs to do in within a very shot time of period.This mostly applies to the companies that are looking onto government based tenders or foreign companies that have got few deals in their new adventure.