That said, you can alleviate the financial strain of your investments if you adopt a strategic approach. It's possible to reduce your expenditure
when you take advantage of your available resources and follow basic money management methods. So, what should you keep in mind as you move forward?
In this post, we’ll review the top five tips to remember when searching for new equipment.
How to Pursue Construction Equipment:
1. Check the After-Sales Support Policy
Not every manufacturer will have a dependable policy for after-sales support. Some of them won't provide any assistance post-purchase, while others are far more reliable. As you evaluate the selection, remember that the support you receive for your equipment will improve its residual value years from now.
It's a smart precaution to check for parts fulfillment and servicing. You'll worry less about repairs and have the help you need to keep your equipment in working condition. Naturally, this will lead to less downtime and lower costs, allowing you to finish your projects with fewer setbacks and unnecessary expenses.
2. Review the Benefits of Renting
You can still enjoy the benefits of new equipment without buying it. When you choose to rent equipment, you'll expand your fleet, remain compliant, and secure the safety of your crew with only a fraction of the money you would’ve spent otherwise. It's a cost-effective and practical alternative to making a hefty purchase.
For example, when you rent equipment, you can delegate maintenance to the rental company. It's a small detail that reduces your expenses and decreases the likelihood of downtime. When you look at the other advantages, it's just one of the many ways in which rental equipment enhances your bottom line.
3. Look Into Leasing Your Equipment
In addition to renting your equipment, you can also choose to lease
. It combines many of the benefits of renting and buying, with a lower rate and a longer period of ownership
. If you want to switch out your leased equipment for a newer model every couple of years, you have that option as well.
However, you'll have to pay higher interest and insurance rates than you would with a purchase. You also place yourself at risk of serious penalties if you break your lease early. Make sure you have a grasp on both the positive and negative aspects of leasing before you commit.
4. Expand the Scope of Your Search
When looking for equipment, you may feel comfortable with a dealer you’ve worked with in the past. However, it's crucial to consider all of your available options before you make a decision.
Many manufacturers and financial organizations alike work to provide business owners with reasonable financing. If your current dealer or bank can't match the most desirable rates, you should expand your search and look elsewhere. Securing good terms when investing in expensive equipment is crucial to the financial health of your business.
5. Consider Your Transportation Costs
It's common among contractors to overlook the total cost of equipment management. As an example, if you successfully bid on a project which is far enough away from your current location, transportation may take a heavy toll. You'll have to cover the cost of the truck, the driver and diesel fuel.
If you're still unsure whether to rent or buy equipment, think about how much you travel on a regular basis. A contractor that travels often can save money if they rent equipment at their destination, rather than transport it. Those expenses can add up quickly over time, so give it thought.
Start Investing in Construction Equipment
If you follow the five suggestions above, you can feel confident in your decision to invest in new heavy machinery. You'll have the equipment you need with the financial security you deserve. With that in mind, search for reputable dealers and start considering how you’ll finance the growth of your business.