Unlocking the Hidden Value of Old Equipment
As a small business owner, it is important to seek ways of optimizing business operations while managing costs effectively. When it comes to acquiring equipment, while many business owners take the approach of buying brand-new equipment or machinery, there is a growing trend toward leasing older equipment such as trailers, excavators, trucks, and other heavy machinery.
Leasing older equipment can offer several benefits that are often overlooked. Let’s explore the benefits of leasing older equipment and shed light on why it can be a smart choice for your business.
Cost Savings
Leasing older equipment offers significant cost savings for businesses because compared to purchasing new machinery, leasing older equipment typically requires lower monthly payments. Depreciation also contributes to the lower price of older equipment and so businesses that have budget constraints can always benefit from it. By leasing older equipment, companies can allocate their cost savings to other areas of the business and achieve financial flexibility.
Low Depreciation Risk
The value of new equipment depreciates rapidly, especially during the first few years of use. By leasing older equipment, you can avoid the inherent depreciation risk associated with ownership. Older equipment depreciates a lot more slowly.
Businesses have greater flexibility when they need to upgrade and can often recuperate much of the initial costs when they sell.
Proven Reputation of Make and Model
With older equipment, the model’s reputation is well established and documented. While you may need an inspector to ensure that the specific equipment you purchase is in good shape, you do already know how the make and model has performed in general. As such, you can target the perfect make and model for your needs.
In an industry where reputation and reliability are paramount, this can be a big competitive edge.
Timely Deployment and Minimal Wait
Unlike purchasing new machinery, which often involves longer lead times for manufacturing, delivery, and setup, leasing older equipment offers near immediate availability.
When businesses have urgent needs or have deadlines to meet, with no time to spare, an already available older model can meet their needs. This allows you to act quickly, obtain the necessary machinery, and start operations promptly. As a result, businesses avoid delays, costs associated with the delays, and interruptions to their workflow.
Lease to Own Older Equipment
While shiny, new equipment is certainly appealing, it is important to consider the benefits that leasing older equipment or machinery can bring for small businesses. From cost savings and proven performance to reduced depreciation risk and availability in a timely manner, leasing becomes a compelling option and a wise choice.
Do you have needs for heavy equipment or machinery? Consider a lease to own solution that can save your business capital! Contact Thomcat Leasing today – our knowledgeable and friendly team is always here to support you every step of the way and provide the leasing solutions you need to thrive in your industry.
