Whether you are shopping at a reputable equipment dealer or shopping for a great deal privately, leasing used equipment can be a great alternative to buying new. Here are five advantages offered by the JLG Financial™ lending partner in Canada, CWB National Leasing, to consider before your next purchase…
Advantage 1: Someone else has paid the depreciation
Construction equipment can depreciate as much as 20 to 40 percent in the first 12 months; however, it retains value in years two, three, and so forth, providing it is properly maintained. That means if you buy a new machine that costs $500,000, approximately $150,000 value is lost in the first year. By leasing used, you avoid that initial depreciation cost.
Advantage 2: Holds value as long as it is maintained
Reputable equipment dealers will track the maintenance history on equipment and know how many hours various parts can go before they need to be maintained or rebuilt. Keeping equipment well-maintained will help preserve the equipment’s value.
Advantage 3: May come with a warranty
Speaking of maintenance, used equipment often comes with a warranty of some sort. This also ensures the value of a used piece of equipment stays as high as possible.
Advantage 4: Low cost of ownership
Many construction projects require specific equipment on a short-term basis and need the flexibility to unload it at the end of a contract. Because the depreciation is slow after the first 12 months you can sell the equipment a year later for close to your purchase price when well maintained, keeping your overall cost of ownership relatively low compared to buying new.
Advantage 5: Long order times with new
Certain types of construction equipment can have a long backlog when buying new, and we all know time is money in the construction industry. You might gain access to the equipment you need right away through leasing used machines.
Still have leasing questions?
JLG Financial can provide you with information on financing options and packages to suit your company’s cash flow goals.
- In Canada, customers can contact JLG Financial by calling 1-833-385-0264 or emailing retailcanada@jlg.com.
- In the U.S., customer customers can contact JLG Financial by calling 888-346-5543 or emailing retailfinance@jlg.com.
To learn more about how JLG Financial can help with financing equipment purchases, click here.
Do you want to stay up to date with industry news and issues similar to this? Make sure you subscribe below to receive monthly updates from #DirectAccess with newly posted content so you never miss important information.