Making Smart Equipment Choices. To Buy or Lease?

When it comes to acquiring construction equipment, making the right choice between buying and leasing can have a significant impact on your bottom line. Let's dive into some key considerations to help you navigate this decision confidently.

• Calculate your monthly loan repayments here
• Looking for truck finance, click here 
• Need extra cash flow, click here

1. Assess Your Equipment Needs

Start by analysing your usage patterns. If you'll be utilising the equipment extensively (more than 60-70% of the time), buying or leasing might be more cost-effective in the long run. Conversely, if usage is sporadic, renting could be the better option.

2. Factor in Versatility and Immediate Availability

Consider the versatility of the equipment and the consequences of not having it readily available. If the machine serves multiple purposes and immediate access is crucial for your operations, purchasing might be more beneficial.

3. Explore Rental Options for Testing and Cost-Efficiency

Renting offers a great opportunity to test new equipment and assess its performance before committing to a purchase. Additionally, it can be a cost-effective way to evaluate payback and job site efficiencies.

4. Understand Tax Implications

Both renting and purchasing have different tax implications. Rental expenses can be deducted annually as a business expense, while purchasing is treated as a capital expense, requiring amortisation or depreciation over time.

5. Consider Financing Options and Interest Rates

Keep an eye out for low financing options offered by equipment finance specialists. Zero percent financing and other incentives can make purchasing more attractive as well as rebates. 

• Talk to us about your financing needs, click here
• To expand your fleet, click here 
• To get fast and competitive equipment finance, click here

6. Evaluate Depreciation and Resale Value

Research different brands and models to understand depreciation rates and resale values. Choosing equipment with better resale value can make a significant financial difference in the long run.

7. Account for Transportation Costs

Factor in the total cost of equipment management, including transportation expenses. Renting equipment at the job site might be more cost-effective than transporting it long distances.

8. Assess Fleet Management Capabilities

Evaluate your company's capabilities in fleet management. If it's not a core competency, outsourcing equipment management or renting may be more practical.

9. Stay Informed About Legislative Issues

Keep abreast of legislative issues surrounding depreciation and tax incentives. Changes in legislation can impact the financial implications of buying or leasing equipment.

By carefully analysing your equipment needs and considering these factors, you can make an informed decision that aligns with your financial goals and operational requirements. Whether you choose to buy, lease, or rent, Equifund Finance is here to support you with tailored financing solutions.

Let's make smart equipment decisions together. Contact us today. 

At Equifund Finance, we pride ourselves in:

• No paperwork Finance
• Over-the-phone approvals
• Hundreds of Australian businesses helped
• New or used Vehicles and Equipment