1. How long will you be using the equipment for?
Whether you need to add trucks and flat beds for short hauling contracts or replace a telescopic boom or mini excavators you plan on using for the next five years, knowing how long you plan on working the gear for will help determine your best purchase option.
Tip: Ask what conditions your finance and leasing partner offer based on how long you need it for, before settling on a payment option.
2. What are your trade up options?
Sometimes you don’t know how long you’ll need the equipment for, as you don’t know when or what the next job will be. If you are uncertain, you can ask about terms that offer you flexibility, such as trade-up programs.
Tip: Select companies, like Stride Capital, offer a trade-up where you can move from one piece of equipment into the next. So long as the next asset is about the same cost as your current lease, you can do so without major penalties.
3. Should you do a short-term rental or lease?
You may look at renting to ‘try out’ a unit for a few months and see if it works well for the job at hand, or to avoid commitments until there is more work lined up. Short-term equipment rentals provide the freedom to walk away from the equipment with month-to-month payments, but they can come with much higher payments and limited (or no) equity in your asset. A lease offers you less expensive monthly payments and equity, but with most companies, there is minimal flexibility once you finalize your lease paperwork.
A typical rental can range from 2 to 4 times more than a lease with Stride Capital. A $4,000 monthly rental for 6 months is $24,000 in payments and, in most cases, you’re not building much equity if you decide to purchase the asset. That same asset could be leased for under $2,000 per month, meaning you’ll pay the same or less than the $24,000 but over a full year and have equity in the unit.
Tip: Talk to your finance and leasing company. At Stride Capital, we calculate the numbers for our clients and show them both sides. We also know that the job can change, so we offer options to use rental credits as a down payment when you decide to purchase the asset. We handle all the work between you and the vendor, so you can focus on your business.
Stride Capital is here to help you to get into your next piece of gear, with the best financial product for you today and as your business moves forward. Contact us, start your application today or connect with our sales team today to get into the financing you need for you next piece of gear.