Success in the fields of construction, landscaping, and other related fields depends on having the appropriate equipment on hand.
Contractors of all sizes frequently select skid steers because they are multipurpose machines that can do a wide range of jobs. Nevertheless, the dilemma of whether to buy or skid steer leasing emerges.
Leasing offers a strong set of financial benefits that can greatly help your business, even though buying a skid steer has the advantage of ultimate ownership.
These are eight convincing reasons for your business to consider leasing a skid steer rather than buying one outright:
A Skid Steer: What Is It?
A skid steer loader is a small, incredibly adaptable piece of equipment that is frequently referred to as a “Bobcat” after a well-known brand.
Its mobility and variety of attachments make it an invaluable tool for several jobs, such as
- Landscaping: upkeep of lawns, debris removal, and site preparation for additions or restorations.
- Snow removal: During the winter, effectively clean walkways and parking lots to protect the safety of patients and employees.
- Material handling is the process of moving bulky items during home repair or upkeep, such as gravel, mulch, or building supplies.
- Demolition: Minor demolitions to make way for new treatment areas or restorations.
Compelling Reasons to Lease Skid Steer
1. Hold onto Working Capital for Future Growth Prospects
A large down payment is necessary when purchasing a skid steer. Your operating capital—the lifeblood of any business—could be exhausted as a result.
Alternatively, leasing lets you break down the cost of the equipment into a set monthly payment, freeing up cash for other essential areas of your company.
This could involve taking on new projects, investing in marketing campaigns, or even adding more equipment to your fleet.
2. Fixed Monthly Payments and Predictable Budgeting
Fixed monthly payments are one benefit of leasing a skid steer. Your budgeting approach will benefit greatly from this much-needed stability.
Routine maintenance is usually included in leasing agreements, as opposed to ownership, when you may be responsible for unforeseen repair or maintenance expenditures.
This makes it possible for you to precisely protect your equipment costs for the duration of the lease.
3. Encourage creativity with access to the most recent technology
New and improved models are often launched, and the construction equipment business is always changing. By having access to the newest skid steer technology without having to pay the high cost of purchase, leasing enables you to stay ahead of the curve.
This can provide you with a considerable advantage over rivals that continue to use outdated, ineffective machinery.
For example, the newest versions of skid steer vehicles may have better safety features, reduced pollutants, or increased fuel efficiency. By leasing, you may take advantage of these developments without being restricted to antiquated technologies.
4. Reduce the Chance of Depreciation
Construction equipment ages and loses value just like any other machinery. It is your responsibility as the skid steer owner to pay this depreciation. This risk disappears with leasing. You just return the equipment and go when the lease expires.
The hassle of reselling or worrying about getting a good price for a depreciated asset is absent.
5. Tax Benefits of Renting
There may be some tax advantages to leasing for your company. Generally speaking, lease payments are deductible from taxes as operational costs, which can reduce your total tax obligation. It’s always a good idea to speak with your tax expert to find out the precise tax ramifications of leasing in your unique circumstances.
6. Streamlined Equipment Administration
Leasing businesses can save you time and money by taking care of routine maintenance on the equipment you have leased. This frees up your team to concentrate on important business tasks instead of maintaining the equipment.
Some leasing companies can also provide roadside assistance or extended warranties to give customers even more peace of mind.
7. The Ability to Adjust to Your Needs
When it comes to the requirements for equipment, leasing is more flexible than owning. You can select a lease duration that is ideal for your project’s needs. Leasing lets you customize your equipment acquisition to meet your unique requirements, whether you’re looking to buy a skid steer for a short-term project or long-term work.
8. Upgrade or Leave with Simplicity
There are various options available to you when your lease expires. You have no further responsibilities other than to return the skid steer and walk away. You can simply switch to a newer model with the newest features if the technology has advanced significantly.
Furthermore, if the equipment still fulfils your needs, certain leases may include a buy option that lets you
Wrapping Up
Making the smart financial choice to lease a skid steer can have a lot of benefits for your company. Leasing is an appealing substitute for ownership in many ways, including maintaining cutting-edge technology, reducing depreciation risk, and having predictable budgeting.
Before choosing, give careful thought to the equipment requirements and your unique business needs.
