Three Ways to Deal with Today’s Higher Cost of Equipment
It’s no secret that the supply chain crisis is driving up the costs of doing business and making it harder to find the heavy equipment that you need.
Competition for used equipment was already fierce at the end of last year, when it was reported that earthmover, truck, tractor, and other equipment prices were at least 25% higher than in late 2020. Then November’s flooding and mudslides cut the rail lines and highways in BC, slowing down the flow of new parts and equipment coming into Canada through the port of Vancouver.
So what can you do about it? Get creative with a leasing strategy that keeps you making money despite supply chain disruption!
Think Used and Private Sales when the Dealers are out of Stock
Dealers are having a tough time filling orders these days and the supply chain problems make it hard for them to predict when they’ll be able to get new equipment in stock. If you need equipment to take on new jobs today, you’re going to have to search online for used equipment.
Here are a few tips for buying equipment online:
- Filter your searches for the best results
- Search on popular, well-established sites
- Focus on finding the best equipment, even if it’s not the cheapest
- Cast a wide net and be thorough, look outside your city or even province
- Get more purchasing power by leasing
Lease-to-Own the Equipment You Need Today
Financing your equipment purchase is your next big challenge. If you want a faster turnaround, lower up-front costs, and minimal paperwork, then you want to choose lease-to-own instead of getting a loan.
Lease-to-own financing offers you a lot of flexibility to set up the payment options that work best for you. It also lets you use the purchased equipment as collateral and count it as a business expense for the duration of the lease. Ask a lot of questions so you get the best possible deal.
Finance Your Shipping to Spread out the Costs
So now that you’ve found the equipment you need, you’ve got another problem: it’s halfway across the country, you need to have it shipped to you, and the price of gas just keeps rising. The good news is that you don’t have to go broke paying for shipping up front. Instead, you can roll the equipment shipping costs into your lease deal. Then you can pay off the costs while you’re working, in manageable monthly instalments. Make sure you ask about this option when you negotiate your lease.
Don’t Let the Supply Chain Slow Down Your Business
For over 30 years Thomcat Leasing has been helping small businesses like yours get the equipment they need. Our You Find It! We Finance It! Lease takes the hassle out of financing equipment you find for sale online – private sale or dealer, Canada or the US, we can make it work!
We’d be happy to talk about all your options, including lease-to-own and rolling your shipping costs into the lease. To get started with a fast, no-pressure equipment lease estimate, contact us today!