Tag Archives: buy heavy equipment

Why to buy heavy equipment when you can easily take them on rent

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While you set up any form of business, you should not end up using all your capital in buying resources. Remember that you also need money to meet other operational expenses which if not taken care of at the right juncture can prove to be extremely disastrous for your business. Hence, you can’t afford to invest all your monetary resources in buying items which are however essential for your business but still can be possessed using an alternative means. It is essential to prioritize your business needs and understand if you can opt for any other means to possess a resource rather than have to buy it. In the construction sector, heavy equipment play a significant role towards the beginning and the conclusion of a project. However, these machines are extremely expensive and often not within the reach of small time contractors and construction companies. Now if you do not possess heavy equipment you have no other means to start your work. You need some equipment or the other to begin.

The solution is to rent heavy equipment if you can’t buy it. If you rent then you are only obligated to pay the rental and as long as you see a need for the machine you can continue with the rental contract and when the work is over you can hand it over to its owner. Even a small startup construction company can easily afford to pay the rental of heavy equipment. It is also easy to get hold of people who are letting out their heavy equipment on lease. All you need to do is check out on people who rent heavy equipment and see if they have the machine that you are looking for.

Other major advantage of skipping to buy heavy equipment and taking it on rent is that you do not have to worry about paying the creditor for the machine. It is obvious that if you can’t afford to buy it you will have to borrow it and then you got to pay your creditors at the beginning of each month. If in case you fail to pay them then it may have serious damage on your reputation, credit ratings and you may also end up losing your machine. This is definitely not that you would want to happen and hence carry on your work using heavy equipment that you procure on lease.

While you use heavy equipment on lease, you must ensure that you take uttermost care of the machine because if it fails to work then you got to bear the expense of repairing it and getting it back to business. You just can’t hand it over to the owner saying that the machine is faulty. Also remember to inspect the machine well before you procure it. It is advisable to go along with a mechanic or an expert to inspect the machine. If you know to operate it, try your hands on it and check if it is worthy to be taken.

 

How to buy heavy equipment at lower price

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Every company would want to buy raw materials required to make finished goods at a lower price. This will help them to bring down their manufacturing cost and can make more profits in return. However, the challenge here is to know the source that can provide them the raw material at a lower price. The raw material provider does not provide the stuffs at cheap rates to everyone but there is a simultaneous market that deals with the same stuff at a lower rate. The problem is not everybody is aware of this simultaneous market. Similarly, when it comes to the construction industry, they have one such market from where they can buy heavy equipment at a lower price. There are few construction companies who are in the business of buying construction machines at a relatively lesser price and then let it out to other companies or contractors. They make good money in this transaction as well as are also able to retain the machine.

Repo heavy equipment can be bought at a lower price:-

Buyers of heavy equipment who purchases the machines by borrowing loan and if they are unable to repay the money, the machine is repossessed by the lender. Now, the lender does not want to keep it under its possession for too long. The lender is interested to get its money back and therefore it auctions the machine and sells it to the highest bidder. In this particular case, not many people are aware of such auction and therefore not many people turn up. Also, the lender wants to get the money back that it has lent to the borrower and is not looking to make more money by doing this process. This means they keep the price of the heavy equipment much lower than one can think of. Due to low footfall, the price of the machine does not increase exponentially in the auction and the highest bidder can manage to buy it at a lower price.

Shutting down the business:-

The construction sector is quite a challenging and dynamic one and not many people are able to survive the odds of the industry. This is why many people decide to shut down the business and try something else. The people who are in the process of shutting down their business would want to sell off all their belongings so that they can have some money at the end of their entrepreneurial journey. They will be releasing an ad in local newspaper or simply list the item on some website that deals with buying and selling of heavy equipment. Just in case, you manage to get to know the person, you can directly walk up to him/her and check if he/she wants to sell it off to you. You can check the condition of the machine and give him/her a deal that he can’t refuse. They will be happy to get anything reasonable that you can offer him/her and will hand over the machine to you.

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Where can I sell heavy equipment?

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If you have construction equipment that you no longer use or feel that you want to replace it with a newer one, it is better that you start looking at avenues to sell the machinery so that you have enough cash to buy the new equipment. In our personal lives when we are fond of a thing we tend to buy it first without caring much about the burden it can have on the budget of the family. It is all paid through cards and we get the time to reimburse them. However, it still remains a burden that needs to be paid-off. Nevertheless, in a business you can’t expect to take such risk because the proportion of risk is higher in business and any miss calculated step can prove to a disaster. In construction business where the business owners deals with heavy equipment, they got to sharp enough to understand what they are doing than repenting it once the damage has been done. The construction companies therefore believe in first selling the old heavy equipment if they are not using it or are planning to buy a new one.

Sell it to small contractors or construction companies:-

When it comes to selling heavy equipment, you have enough avenues to do this. The first is selling it to small contractors or construction companies. You may come across a lot of small time contractors and construction companies that are always in look for good deals where they can buy used heavy equipment at a comparatively lower price. The way you can get hooked to these guys is through pervading the message that you are selling off your heavy equipment and channelizing it through your peers. The message thus passes on and it reaches many ears who will contact you to see if you can give them a good deal. Please ensure that before you put across the message of selling the used heavy equipment you get it repaired and painted. It should look good and worthy to buy.

Dealers who deal with used machines:-

You can get in touch with workshops or dealers who deal with buying used heavy equipment, refurnish it and then sell it off to customers. Their modus-operandi is to buy the machines at a lower rate, give it a new life and face and then sell it with a good profit margin. So just in case, if you do not find buyers using the first method, you can also make use of this one. Get hold of a workshop that repairs heavy equipment and check how much will they pay for the machine. They may quote a lesser price but it depends on how you negotiate the price with them. These guys are smart and they might quote you the price of a junk. However, you got to maintain its price and not let it go as a junk. Also it makes more sense to check the price with some of the dealers before you call it a deal.

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Buy heavy equipment from companies to get the best deal

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The different types of heavy equipments are the workhorse of construction industry. Heavy machinery and equipment is a serious business and costly too. While buying these equipment a number of factors should be considered as duration, scale, budget and their future use. The harsh construction activities leads to wear and tear, hence buying quality equipments is of utmost importance. In such cases it is good to buy the equipment from a branded company. Companies like Caterpillar Inc. sell both new and used (in running conditions) equipments. They offer good deals for the same.

Some useful tips on buying equipment from companies are as follows:

  1. There are a number of construction projects in pipeline. If the existing current equipment will not be able to complete all tasks, then additional equipment are required. While purchasing equipment in bulk one should check if they adhere to quality standards and are user friendly. They should be compatible with the worksite conditions. Such bulk purchase should be made from companies since goods can be negotiated with them.
  2. The company’s Application specialist also guides and gives suggestions/advice on operation of these machines. In addition, he provides troubleshooting to the problems faced by the customers while using these machines.
  3. Construction is an expensive business. Purchasing brand new equipment requires a lot of planning. The owner may not be able to purchase brand new machines due to economic constraints. Further, always the operators are not comfortable while using new machines embedded with latest technology. Hence, the company has to impart training to them which adds to the cost. In this case purchasing used (pre-owned) machines is helpful. One just has to ensure that all the parts are in working conditions and will not have to bear huge repair costs in future.
  4. When purchased from companies, the equipments have warranty period. If anything goes wrong with equipment during this period it will be repaired free of costs. The equipment needs to be backed by the in-house service team.
  5. Buying from companies will be economical since they offer routine inspection and guide on maintenance of the equipment. The spare parts will be also available with them.
  6. At times these companies lend their equipment to the customers for fixed time period. This practice allows the customer to get used to equipment and later purchase it.
  7. Many times these equipment are given on loan basis. One just has to pay monthly instalment till it recovers the cost.

Heavy machinery and equipment is an expensive business. The production depends on the kind and quality of equipment used. One has to ensure that these machines are bought from trusted dealer or companies so that it turns beneficial in the long run.

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For beginners – Don’t buy heavy equipment. Rent them

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Beginners joining any profession have to be really careful on the expenses they are making on their business. They might have extremely no control on their expenses as they may not understand how to block the flow of expense. They have to take care of a lot of recurring and non-recurring expenses and while they do so, they may completely lose track of the money left in their bank account. One fine day, they may find their bank account showing very less balance and may foresee lot of expenses to clear. They may find themselves to be in a very tight position and therefore it is important that they refrain from doing any expenses that is not much needed for the smooth running of the business.

To be more precise, if you are in the construction business, you got to be more cautious than ever. For timely completion of projects, you got to possess heavy equipment that are very expensive and if you do that then you tend to spend a good portion of your money for procuring the machine. This may leave you with very little money to meet other business obligations. Hence, it is advisable that if you are a beginner in the construction industry, do not spend your money in buying heavy equipment. On the contrary, you can take them on rent. That will turn out to be a good deal for you where you do not have to spend a bounty and things will be very much in your control.

Identify the heavy equipment you may need for your project:-

It is very crucial to know what type of heavy equipment is required for your business. As long as you do not know that, moving ahead will be difficult. Take guidance from people in the industry if you have any or join some blogs where you can put your questions about heavy equipment to them and you might get real good replies which will prove to be very helpful to you. Once you have identified the heavy equipment, the next goal will be to check the rental price of the machine. Not every owner of the equipment will rent it at the same price. The rental price of the machine may vary keeping into consideration the quality of the machine, the period for which it has been used. In other words, if the machine is not much older then you may have to pay more rent. However, if it is an old piece then you supposedly have to pay less for it.

Go to online portals to check the machine:-

Owners list the heavy equipment on websites that deals with selling and renting of construction machineries. Going to such websites will be really helpful to you as you will get to see a lot of options at different prices. You can then select the one that you seek to have and speak with the owner. If possible you can negotiate the price and try to bring it lower. You will end up getting a good deal at a considerably lesser price.

 

Want to rent/buy heavy equipment. Avoid involving middlemen

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Heavy equipment are highly expensive items and people who deal with buying, selling or renting heavy equipment usually earns good commission out of it. However, the person who has to pay commission may not find himself in a comfortable environment to pay money just to procure machines. The buyer in this case pays to two parties. First it is the seller and the next is the agent. So eventually, he ends up paying more for the same item and therefore he may not be so happy with the transaction. On the other hand, the seller also needs to pay his part of commission to the agent. This means that the agent gets a good deal of money from both the parties. His part of work was to understand the needs of the buyer and then search for a seller who is selling exactly what the buyer is looking for and ultimately introduce both the parties to each other. He needs to push the buyer a bit to buy the machine and if he gets convinced, the sale is done and he gets the commission.

The seller does not have much to lose here as he gets rid of the machine and does not mind paying someone who has helped him to get it sold. The problem is with the buyer who has to pay for the heavy equipment and also to the agent. Now by any way if he can manage to get the agent out and deal directly with the seller he does not have to pay any cut to anybody. So just pay the price of the machine and it belongs to you. The difficult part would be to locate the seller who will have exactly the stuff he needs.

Well there is a solution to this. We have many online portals that deal with buying, selling and renting of heavy equipment. So all you need to do is become a member of one such website and search for the heavy equipment that you require for your business. You will find almost everything under the sun. Right from scrapers to loaders and from CAT to Volvo, you will find a seller for all kinds of heavy equipment. The important part for you would be to join the portal that does not charge any fee from the buyer. The seller usually does not mind paying a small amount as fees to the online portal.

There are also some agents who work in the same manner as the online portals do. There is no harm in using the service of the agents as long as they do not bill you for earning commission. So you got to be pretty sure that they are not charging anything from the buyer and if they do, make it clear to them that you do not want their service as you do not want to pay commission to them. Try to avoid the involvement of middlemen ad it can save lot of your hard earned money.

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Rent Heavy Equipment Texas

Experiencing monetary crunch – Don’t buy heavy equipment. Rent it

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People who are from the construction business frequently experience the problem of unable to buy heavy equipment dues to shortage of finance. They may have got big projects to work but often find themselves short of heavy equipment and when they think of buying few machines they experiences huge shortage of finance. Heavy equipment are thousand dollar items and you will not get any at a dirt cheap rate as long as it is an outdated model and is being used by none. Those types of machines will be of no use to you. It is better that they are sold as scrap.

So what can you do when you are in the middle of signing few very important and life changing projects and at the back of your mind you know that you are highly short of heavy equipment and are in no position to buy new stuffs. Well, the better way to deal with this kind of a situation is to rent some machines for the time you think you will need them to complete the project. Though you have to spend some money each and every month as paying rent to its owner but still you will be able to get your work done. Later if you feel like you can buy one such equipment you can take the call but till the time you are having monetary issues, you should not be thinking about increasing them by intending to buy more machines.

One of the most appropriate ways to take heavy equipment on rent is to do it online. There you can find numerous machines posted by various owners; all wanting to either sell their machines or rent it out. Searching for heavy equipment online will give you good enough options. You also will be able to see the pictures of the machine, read the description and analyze if this is what you should be looking at. Few online portals also allow you to contact the owner of the machine so that you can speak to him and clear your doubts if you have any. You can also try to negotiate the price with the owner only if he is comfortable in doing so.

It is very important that you estimate the duration for which you need the heavy equipment. It is very much possible that you have to contact different owners and take machine on rent from them. You may not find one person renting all the different types of machines you need. Therefore knowing which equipment will be needed when is very crucial. It is also possible that one owner has lot of machines with him but has listed only a few. You can check with him if he has more stocks and if he wishes to rent them as well. You may get all the fruits in one basket.

Last but not the least; make proper rental agreement with all the terms and conditions stated explicitly in it. This will help you to safeguard your rights and you do not have to pay more for anything that’s not mentioned in the agreement.

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Loan to buy heavy equipment

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Loans have become a part of life for almost every citizen of this country. The day you begin to earn, you also apply for credit cards and start buying things on credit. This is also one form of loan where you intend to pay the creditor on or before the due date. Catering to our needs, there are different segments of loans that financial institutions have come up with. You can go for home loan, personal loan, auto loan etc. People who need money to start their business can also apply for business loan and they shall get it at affordable interest rates. Though not all banks offer loans at affordable interest rates, one needs to check which bank they should go with for easy payments of installments. So for people who have just stepped in the construction business and require loan to buy heavy equipment can shop for banks who can offer money at reasonable interest rates.

Before you start shopping for banks to apply for loans, it is imperative that you check the need to buy heavy equipment for your business. You can fulfill your requirement by taking it on rent where you do not own the equipment but can use it for a year or so and then give it back to the owner. You only have to pay an amount that has been agreed upon by both the parties at the beginning or at the end of every month.

However, if you feel that renting heavy equipment is not the solution to the problem and buying one is the need of the hour then you should begin to hunt for a bank. We all want to borrow money at affordable interest rates but an application has to go through a lot of screening in order to qualify for that. It has been seen that not many people qualify for loans at lower interest rates.

Pay a fee to get loans at lower interest rates:-

At times you may not qualify to get loan at a lower interest rate. Either you credit rating is not up to the mark or there may be some reason or the other that fails you to qualify for a lower interest rate. Some banks may still qualify you provided you have to pay them a fee to get that done. However, not all banks follow this as their guideline to bring down the interest rates and it completely depends upon what the banks need to lower your interest rate. To buy heavy equipment you need to have lot of money. The ideal situation would be to use an amount that is part of your savings and the balance should be taken as loan. In this way, even if the interest rate is high you would be able to manage it well.

Improve your credit rating:-

Your credit rating plays an important role in qualifying for the bank loan. So you should ensure that you keep it clean by paying your dues in time. Likewise once you buy the machine ensure that you pay the monthly installments on time without defaulting for even a month. This will keep help you to keep a healthy credit rating.

How to purchase worthy heavy equipment

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Be it a construction business that owns heavy equipment or contractors who uses their heavy equipment in various construction sites, they all are worried about one basic thing and that is have they bought worthy heavy equipment? Is the machine going to work for many years as promised by the dealer or the heavy equipment company? These thoughts do make several rounds in the mind of the person who has recently bought heavy equipment and it is also very obvious for them to worry about the worthiness of the machine. They buy heavy equipment after investing thousands of dollars and they want suitable outcome of their invested money. They just want the machine to function when it is required to.

There are few things that one needs to do before he decides to go for procuring heavy equipment. These steps are simple but many skip doing them due to several reasons better known to them.

Go for a good brand:-

Purchasing heavy equipment from a famous brand has a lot of merits. A famous brand will not afford to play around with the quality of the machine and therefore whatever they will manufacture will be of top notch quality. Though they may sound to be expensive but will be very reliable when it comes to performing on the jobsite. You may have to shell more money while buying the item but then it will save your money as far as fuel consumption is concerned which becomes another major cause of worry to the owners of heavy equipment. Moreover, they will cost less on maintenance and will be more productive unlike machines of less popular brands which start giving problem after few months of purchase.

Take valuable suggestion from industry experts:-

It makes a lot of sense to take suggestion from few people who knows the in and out of the subject and then take your call. The heavy equipment company will speak all positive about the machine but you will get to know about its negative side from industry experts who have been working on different kinds of heavy equipment for the last many years. They might be in a better position to give you valuable suggestion about a particular machine. You might also consider taking suggestions from more than one person. However, refrain from involving too many people as that might confuse you and weaken your decision making ability.

Take an expert with you to shop for heavy equipment:-

Ask an expert to accompany you whenever you decide to buy machines. This is perhaps one of the best options you can take to purchase worthy heavy equipment. It will actually allow the expert to personally check the machine and also ask certain intrinsic questions which are technical in nature that you may have skipped to ask. This will always prove to be advantageous to you. The only criteria will be that you should know he is a trustworthy guy and will not mislead you.

 

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Hire, Purchase or Lease – Which One is better for Your Next Heavy Equipment Investment?

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Presently, construction industry is blooming but in a slow speed. In this situation, is it better for a construction company owner to lease, procure or rent a bulky paraphernalia? According to Peter D. Gregory, the senior vice president of the reputed construction group of Atlanta commented that right now the condition of the market is tentative that’s why the construction company owners are hesitating to procure heavy equipment or go for leasing deals. Yet, the construction concerns still require bulky paraphernalia to accomplish their task on the site.

In large organisation, the construction business possessors hire equipment managers and chief financial officers to give suggestion on the issue of renting, leasing or purchasing the heavy equipment. On the other hand, in the budding construction firms, the owners alone take the decision. The presidents of some of the well-renowned construction companies stated that the decision entirely counts on the financial condition of the organisations. To determine, which one is the most suitable one needs some logical prediction and forethought. Here in the following piece, the readers will come to know the difference between the buying, renting and leasing a heavy construction equipment.

Renting, Purchase and Leasing Options for Construction Site Contractors

Rent option helps the contractors to save their capital. Often, they choose the option of renting when they require a specific item for a particular task. Some of the well established construction merchants stated that renting is more costly than lease and purchase options because it provides flexibility to the clients.

When the contractors procure heavy construction apparatus, the dealers not only proffers instant ownership but also subtracts the depreciation cost of the equipment. The interest the possessors get form the deduction helps the construction firms to conserve their tax amount. Majority of the construction organisations prefer to buy heavy equipment parts as it adds as a valuable asset in the in the balance sheet. But, the majority of the budding construction owners prefer to go with the lease option because of the Alternative Minimum Tax (AMT).

Lease is yet another option that is facilitated to the construction company owners by the dealers. It is the best choice for those organisations which are not efficient enough to utilise the depreciation. Other than ownership, this option also provides usage pact with typical no money upfront quality.

Comparison Between Lease, Rent and Buy of Heavy Construction Equipment

For long term use, the charge of the lease is much lower than the renting cost. Therefore, it is sensible for the contractors to avail the benefits of leasing heavy equipment for long term basis. If the construction company owners desire to attain the equipment, then the outright purchase technique is more economical to other alternatives.

On the other hand, for short term purpose, the option of renting heavy construction apparatus is the best. If any construction concern owner wants to go with the buy option, he/she should asses some factors like time duration of the application of the equipment and its maintenance cost.

To sum up, it can be said that all the above mentioned options of availing the benefits of heavy equipment are beneficial to the construction owners unless and until they have the skill to attain it in proper way.

 

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