If you just won a construction bid or are embarking on a large building project, you likely need a crane to hoist beams and/or lift heavy building materials into place. The mechanics behind the crane have been used since the days of the Ancient Egyptians, and this basic piece of construction equipment is still invaluable today. You may be wondering whether it makes more sense to lease or to purchase one or more cranes for your project. While leasing can be initially less expensive, there are many good reasons to purchase your equipment outright.
Five good reasons to buy a crane versus leasing one
1. You control the equipment's use. When you purchase your equipment, you don't have to worry about any lease restrictions as to its use. You control where the equipment is used, how long it's used and what projects it's used on. In addition, when you lease, it can be difficult to break the lease agreement if the job ends up requiring less time than you originally estimated. When you own the equipment, you can rent it to someone else or even sell it as soon as the project is done.
2. No fees. When you lease equipment, there are a myriad of fees associated with the transaction. When you purchase a piece of equipment outright for cash, there are a minimum of fees.
3. Tax advantages. When you buy a piece of equipment, you can generally deduct your insurance, license, depreciation, taxes and any interest from your corporate income taxes.
4. You control the maintenance. When you buy a new piece of equipment, you know exactly how that crane is serviced and maintained. You don't have to worry about a mechanic having less exact standards than you do.
5. Less downtime. When you own a crane, you know that it's available when you need it. When you rely on leasing, you risk that the rental company may not have the equipment you need when you need it. That may prevent you from being able to bid on jobs with a tight or immediate timeline.
While buying a crane or other piece of heavy equipment may not be the right choice for every construction company, buying vs. leasing lets you keep control on how and how long the machine is used, helps to reduce fees, gives you better control over the vehicle maintenance and can even possibly give you several good tax deductions. For more information on cranes, talk to a professional like Alpha Design.