The Difference Between Renting Heavy Equipment and Leasing
In the world of heavy machinery there are some key differences to machinery equipment rentals or leases. Lease agreements are contracts that cover renting any piece of equipment, such as a mini-excavator rental, for a specified period of time, and typically longer expectancy than a normal heavy equipment rental. The terms of the lease cover the entire rental period and cannot be changed once it is signed. Furthermore, lease agreements will never automatically renew. Rental agreements, on the other hand, cover machinery equipment rentals for a flat rate on a basis of your choice: daily, weekly or monthly. It offers a more flexible option in case you change your mind or would like to trade for a different type of machine. Be mindful that as long as that bulldozer rental is not returned, your agreement will automatically renew to the set rental price and parameters agreed upon (daily, weekly and monthly). So let’s dive in a little deeper on the cons and pros of each…
Things to Consider While Renting Construction Equipment
Equipment Rental is the most economical, flexible and risk free way to add an extra machine to your fleet. You can do it temporarily to finish a project or to try out a new machine you’ve been considering buying. There isn’t a long-term commitment that you must abide to and you can rent a machine for as little as a day or for as long as you want to. Also, renting from a rental company near you gives you the peace of mind that you will never have to take care of the service. When it comes to renting, the key is to find a reputable company who is known for their customer service and well-maintained machinery, such as Sonsray Rentals. The last thing you need when machinery equipment rentals for the short-term is to put things on hold due to malfunctions or breakdowns, and Sonsray Rentals, a rental company near you in California and Washington, employs factory-trained Master Certified Technicians who take care of their machines and routinely service them.
Things to Consider While Leasing Construction Equipment
Leasing equipment has a bigger impact than simply renting. For one, a long-term contract is viewed as a balance sheet item, unlike machinery equipment rentals is viewed as an expense—which many times gets passed on to the customer. Lease owners are also responsible for maintaining and servicing the construction equipment. Having leased equipment on your balance sheet reduces your equity and your ability to borrow accordingly. An equipment lease requires paperwork, personal security, takes time to approve and locks you into a long term equipment lease contract. On the positive, you could be locking in a rate lower than a typical monthly rental because of the long-term commitment. In addition, when your lease agreement is up, you have been building equity into that machine that a portion of your monthly lease payments can be applied toward the down payment in case you’d like to purchase the machine and add it to your fleet permanently.
Ultimately, the final decision about which type is right for you is up to you. Large construction companies may be able to own their own fleets. But, for small to midsize businesses, some combination of owned, leased and rented equipment will likely make the most sense.