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Construction Leasing

Choosing The Right Construction Equipment

When it comes to choosing the right construction equipment, there are a number of important considerations that need to be taken into account. Of course, the purchase cost is of primary importance. However, there are many other things to consider before making your final decision. 

In this article, we’ll go over the top ten factors to consider when choosing construction equipment. So that you can make the right choice for you, your company, and your finances. We’ll also explain how you can quickly and easily finance or lease the purchase of both new and used construction equipment. 

Top Ten Things to Consider When Choosing Construction Equipment

Keep in mind that these are by no means the only factors to consider when choosing the right construction equipment for your business. However, by taking into account each one of these considerations, you’ll be able to make a purchase that you’ll be happy with, and that will serve you well for years to come.  

1. Project Scope

First and foremost, you should consider the overall scope of the project. If you are constructing a skyscraper, then purchasing a crane may well be worth it. However, if you are only building a house or doing road work, then probably not. This is an extreme example, but by considering the scope of your project, you’ll be able to narrow down a list of the equipment you absolutely need to buy and the things that you would be better off renting. 

2. Equipment Size

Next, you should consider the size of the equipment you plan to purchase. Depending on the project, you may need a 20-ton excavator. Or a 12-ton excavator may be perfectly sufficient, in which case you would be wasting your money buying larger equipment. This is true for all forms of heavy equipment. Whether we’re talking about front end loaders, excavators, backhoe or yellow iron equipment. 

3. Attachments Required

Something else to factor into your decision when choosing the right construction equipment is the cost of the attachements. If it turns out that you do need an attachment, then look into how much that will cost. Be sure to factor it into your budget. Otherwise, you could end up with a piece of equipment that isn’t doing anything to help the job along, which would be a shame and a waste of money. There are many attachments when it comes to construction equipment that can be fitted on excavators, skid steers and more.

4. Resale Value

Whenever you purchase anything, you should consider that equipment’s resale value. This is especially true of large ticket purchases such as construction equipment. If you only need the equipment for a few projects, then you may be able to resell the equipment. Then recuperate a large percentage of the purchase price. But, if you plan to use the equipment for many years to come, then it’s likely that the resale value will diminish significantly. 

5. Maintenance Costs

Construction equipment tends to have a lot of moving parts. As such, is subject to wear and tear that will eventually require maintenance. Therefore, it’s a good idea to find out what sorts of issues crop up with that particular equipment. So you can know how much it costs for maintenance and repairs. As these costs can eat into your budget and affect your overall profitability if not accounted for ahead of time. 

6. Availability of Parts

When your construction equipment needs repairs, the cost for parts can sometimes be higher than expected. Especially if the parts aren’t readily available. So, whenever you purchase a new piece of construction equipment, consider what parts you may need to replace. Also, when they’ll need replacing, how easy it is to replace them, and how much that’s likely to cost. 

7. Re-Usability

Some equipment can be used for years, whereas other things are only good for a few projects before needing to be replaced. All machines break down eventually. However, if you’re going to invest a lot of money into buying new equipment, then consider whether or not you’ll be able to re-use that equipment in the future. As this is one of the main factors determining the overall value for money on your investment. 

8. The Warranty

Most reputable construction equipment companies (CAT / Hitachi / Volvo / John Deere, etc.) will include a comprehensive warranty with their industrial products. Which can add significant value and make your purchase much more worthwhile. So, before making any large purchases, be sure to ask how long the warranty lasts and what it covers. 

9. Training Required

Generally speaking, most qualified construction workers know how to operate the vehicles and power tools required to get the job done. But, from time to time, you may encounter a task that doesn’t pop up every day. These one-off tasks often require special equipment that your employees may be unfamiliar with. As such, you may need to set aside some time and money to train your workers on operating this equipment. 

10. Overall Cost

Of course, one of the largest considerations is the purchase price of the equipment. Depending on the size of your budget, this may or may not be a huge factor. Either way, you’ll need to factor the cost of purchasing your equipment both into the quote you provide your client and your overall budget for the job. 

construction equipment leasing

How To Finance or Lease Construction Equipment

Let’s face it – construction equipment is expensive especially when your trying to choose the right one. Paying for it all upfront out of your own pocket isn’t always feasible. Fortunately, there are financing options available. A Capital Lease can allow you to quickly and easily purchase the equipment you need and pay for it over time. 

Equipment Finance Canada is a company that helps businesses with both construction equipment financing and construction equipment leasing. 

So, if you need to purchase construction equipment for an upcoming project but don’t have all the money upfront, then be sure to get in touch with EFC today. The application process is easy. The rates are highly competitive, and best of all, you may be able to get the construction equipment you need right away. 

Categories
Equipment Leasing

Leasing Equipment From a Private Sale

Purchasing equipment is expensive, and as such, it pays to shop around. Oftentimes, the best way to secure a great deal is leasing equipment from a private sale, either second-hand or through an independent seller, as opposed to buying new or directly through a vendor. But banks typically don’t finance private sales. Fortunately, there is a solution that allows customers to secure financing for equipment purchases through private sales, and that’s what we’ll be looking at in this article. 

Keep reading to learn: 

  • What a private sale is
  • The pros and cons of private sales
  • The precautions to take when buying privately
  • How to lease equipment from a private sale
  • And much more

What is a Private Sale?

In simple terms, a private sale is when you purchase something from another person rather than from a company. Buying used equipment or finding equipment for sale through classified sites like AutoTrader and Craigslist are great examples.

The Differences Between Leasing Equipment From a Private Sale and Leasing from a Vendor

There are some key differences between buying privately and buying from a vendor. For starters, when you buy privately, you’ll almost always get a much better deal. However, when you buy equipment in a private sale, it may not be in perfect condition, and it can sometimes be difficult to secure financing for private sales. That said, it’s very possible to find like-new equipment for a fraction of the normal price when purchasing via a private sale, and there are financing options available if you know where to look. 

The pros and cons of leasing equipment from a private sale

There are definitely some pros and cons to consider when deciding whether you want to buy privately or through a vendor, let’s look at them now. 

Pros 

Prices are often negotiable

When you purchase something through a private sale, you can usually negotiate the price, whereas when you buy from a store, retailer, or other vendors, the prices are usually firm. 

You can find a better deal

In almost all cases, you’ll be able to save a ton of money when purchasing your equipment privately rather than through a vendor. Sometimes you can even source equipment for half the price that it would cost when buying from a traditional outlet. 

Equipment is often like new

Many people think that buying privately means getting subpar equipment, but in many instances, this is simply not the case. Very often, private sellers are looking to off-load gently used equipment that is almost brand new and is in perfect working condition. 

There is no tax to pay

When you buy equipment through a private sale, you won’t need to pay sales tax, which in some cases can amount to thousands of dollars saved. 

Cons

Equipment may be damaged

It’s true that sometimes, disreputable sellers may list damaged equipment for sale in hopes of recuperating their money on the equipment. As such, it’s important to protect yourself when purchasing privately, and there are a number of ways to do that, which we will look at momentarily. 

A warranty may not be included

More often than not, when you purchase equipment privately, it will not include the original warranty, which means that repairs will generally need to be covered out-of-pocket. However, sometimes a portion of the original warranty will still be in place and can be transferred over to you as the new owner. 

The precautions to take when purchasing from a private sale 

As mentioned, some private sellers list damaged equipment for sale, so when buying privately, it’s always wise to exercise due diligence and do your homework before going through with the purchase. Let’s go over a few of the ways that you can protect yourself when purchasing equipment from a private sale. 

Overall condition of the equipment

You should always inspect the overall condition of the equipment before you buy it. Simply put, you should never take a private seller’s word that their equipment is in perfect working condition; the only way to ensure this is by testing and inspecting the equipment yourself. 

Inspection reports

Always ask to see any available inspection reports for the equipment you’re considering before handing over your money. If no inspection reports are available, then that’s a red flag that could indicate something isn’t quite right with the sale. 

KMs and Hours 

Be sure that you consider the mileage or hours before making a purchase. Vehicles and other pieces of equipment that have high mileage are much more likely to require costly repairs in the immediate future. 

Private sales can be leased by Equipment Finance Canada 

If you find a great piece of equipment and would like to purchase it through a private sale but don’t want to invest all of the money upfront, then you’re in luck. Equipment Finance Canada can help you finance equipment purchases from private sales, and there are a number of excellent advantages you’ll enjoy when financing through EFC.  

Why lease through Equipment Finance Canada 

Equipment Finance Canada helps businesses and individuals with leasing equipment from a private sale. Let’s go over some of the best reasons to finance your equipment through Equipment Finance Canada when buying from a private seller. 

Local banks do not specialize in private sales 

In most cases, your local bank or credit union will not help with financing a private sale. The same goes for equipment leasing and equipment financing. Simply put, it’s almost never possible to finance used trucks / used equipment through a traditional lender. That’s where Equipment Finance Canada is different. We help people finance the equipment they want regardless of who’s selling it. 

We have a wide variety of lenders who are willing to fund private sales

At Equipment Finance Canada, we take pride in having some of the best lenders anywhere. We have a large network of lenders who are willing to fund private sales, and almost always at very competitive rates. 

We can pre-approve buyers 

When you want to finance equipment, it helps to know what your budget is. At Equipment Finance Canada, we pre-approve buyers so that they can search for equipment that they know they’ll qualify for. 

We are able to pay sellers directly

Unlike most traditional lenders, we pay sellers directly so that you never have to worry about handling a large cash transaction yourself. Simply file your application, get pre-approved and let us know what you’d like to buy and from whom; we’ll take care of the rest. 

We ensure equipment is free and clear

To further assist you when buying equipment from a private sale, we personally ensure that the equipment is free and clear, that there are no liens on the equipment, and that everything is above-board, which can save you a ton of problems down the road. 

Summary

Purchasing equipment from a private sale is a great way to get the equipment you need for a fraction of the price you’d pay to a vendor. That said, it’s important to do your homework when buying privately, but as long as you inspect the equipment yourself, this can be a great cost-effective means to acquire the equipment you want without breaking the bank. Traditional lenders often don’t finance private sales, but Equipment Finance Canada can help. So, if you want a equipment lease from a private sale, then be sure to contact EFC today to learn more or submit an application.