Leasing construction equipment, such as concrete batch plants and concrete mixers for onsite concrete, is becoming increasingly popular in the USA. This trend can be attributed to several factors, including the high cost of purchasing equipment, the need for flexibility in terms of equipment usage, and the ability to avoid maintenance and repair costs.
What type of equipment leasing options are available in the US?
There are several types of leasing options available for construction equipment in the USA, including:
Operating Lease: This is a short-term lease that allows the lessee to use the equipment for a specific period of time, typically ranging from 1 to 5 years. At the end of the lease, the lessee can either return the equipment or renew the lease.
Capital Lease: This is a long-term lease that allows the lessee to use the equipment for an extended period of time, typically ranging from 5 to 20 years. At the end of the lease, the lessee can either purchase the equipment or return it to the lessor.
Master Lease: This is a type of lease that allows the lessee to acquire multiple pieces of equipment from the same lessor.
Rent-to-Own: This is a type of lease that allows the lessee to rent the equipment for a specific period of time, and have the option to purchase the equipment at the end of the lease.
Full-Service Lease: This is a type of lease that includes all the maintenance, repair, and insurance costs associated with the equipment, and the lessee only need to pay the monthly lease payments.
Who uses these leasing programs?
Construction equipment leasing programs are generally used by a variety of different entities involved in the construction industry, including:
General Contractors: General contractors are responsible for overseeing the construction of a project and often use leasing programs to acquire the equipment they need to complete the work.
Subcontractors: Subcontractors are specialized companies that perform specific tasks on a construction project, such as electrical or plumbing work. They often use leasing programs to acquire the equipment they need to perform their work.
Concrete companies: Concrete companies that are specialized in onsite concrete production, use leasing programs to acquire the equipment such as concrete batch plants and concrete mixers that they need to produce concrete on the job site.
Small and Medium-sized construction companies: These companies may not have the financial resources to buy the expensive equipment outright, but they still need them to perform their job and thus leasing program is a convenient solution for them.
Public Works: Government agencies responsible for managing public construction projects often use leasing programs to acquire the equipment they need to complete the work.
Building owners and developers: Building owners and developers who are responsible for the construction of new buildings, use leasing programs to acquire the equipment they need to complete the work.
Things to consider before leasing any equipment
Before leasing construction equipment like onsite concrete mixers and site dumpers, there are a few things you should be aware of:
Lease terms: Be sure to understand the terms of the lease, including the length of the lease, the cost of the lease, and any penalties or fees that may be associated with the lease.
Maintenance and repair costs: Determine if the lease includes maintenance and repair costs for the equipment or if these costs will be your responsibility. If the maintenance and repair are not included in the lease, be sure to factor these costs into your budget.
Insurance: Determine if the lease includes insurance for the equipment or if you will need to purchase your own insurance. If you are responsible for purchasing insurance, be sure to factor this cost into your budget.
Right equipment for your project: Make sure the equipment you are leasing is the right fit for your specific project and that it meets the necessary safety and performance standards.
Return or purchase: Decide if you want to purchase the equipment at the end of the lease or return it. If you plan to purchase the equipment, ensure that the purchase price is reasonable.
Additional services: Some leasing companies may offer additional services, such as training and support. Be sure to understand what additional services are available and if they are included in the lease.
Early termination or extension: Be familiar with the terms and conditions of early termination and extension of the lease, in case your project schedule changes.
Read the lease agreement carefully and ask for clarification on any terms or conditions that you do not understand before signing the contract.