Tag Archives: Purchase

How to purchase worthy heavy equipment

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.

 

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

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.