| tart --> | | | | long-term investments. Normally the rental of |
| Construction equipment is also known as engineering | | | | construction equipment for six months leads to out |
| vehicles. These heavy-duty vehicles are specially | | | | right purchase to avoid the loss of equity investment. |
| designed to carry out construction and engineering | | | | Find more info at [ |
| tasks. | | | | In a typical example for a project with three |
| The finance needed for buying construction equipment | | | | contractors bidding for the work, the contractor with |
| is arranged through an equipment leasing association. | | | | equipment owned outright has to consider only the |
| The construction market is buoyed by a boom in the | | | | interest amount spent on financing the purchase while |
| construction business after experiencing a couple of | | | | costing the project. |
| slow years. | | | | Whereas a construction company which opted for |
| Only those corporations or smaller businesses who | | | | leasing only has to consider the recurring monthly |
| are flush with cash can afford to buy the construction | | | | payments for leasing while making the estimate for the |
| equipment on an outright basis. | | | | project. The contractor who rents the construction |
| Renting or leasing is the traditional best option for | | | | equipment has only to calculate the rent he is going |
| contractors who do not have large reserves of cash. | | | | pay and he is not saddled with equipment, which is not |
| The contractors who could not afford to buy the | | | | incurring loss when left unused. |
| construction equipment have these methods as an | | | | Complicating the matters further, there are too many |
| alternative arrangement. Renting of construction | | | | types of finance plans, with offers of a wide range of |
| equipment is an option to face a short-term need | | | | schemes beckoning the contractors with repayment |
| whereas leasing is the option suitable for long-term | | | | terms averaging from 3 to 5 years. |
| needs. | | | | Manufacturers such as John Deere and Caterpillar |
| According to a survey conducted by the industry, | | | | have their own sub division for financing, which permit |
| there is less desire on the part of the contractors to | | | | the contractors to lease the construction equipment |
| own construction equipment and they always go | | | | directly from the manufacturers. These types of |
| through reviewing the concepts – leasing or | | | | sources serve nearly twenty percent of the market. |
| renting – to select the best option. | | | | Leasing opportunities are also offered by banks. |
| Leasing or renting should be seen as a forerunner to | | | | Because of the inherent risk, most of the banks steer |
| buying since it gives a chance to test the construction | | | | clear of the construction industry. |
| equipment without the burden of large cost or | | | | |