Construction equipment is synonymous with engineering vehicles. This is a field that consists of all the heavy-duty equipment and machinery commonly applied in building and constriction works.
Those who need to purchase such equipment need to approach an equipment leasing association for their financial planning. There has been a noted increase in construction works, that has seen more visits to such equipment leasing associations.
Major corporations and a few businesses who have access to enough cash can afford to purchase such equipment as generators, compactors, and compressors in cash.
Other entities have to rely on renting or leasing this equipment, depending on the contracts available at the time. This is what is manageable in financial terms. They will rent when it is for one job, then lease them when there are more jobs lined up in the future.
There have been studies conducted that show that most contractors prefer not to own the heavy-duty equipment. They prefer to conduct reviews of the two alternative methods whenever they need to use the said equipment, and coming up with the best option of the two.
Leasing or renting of these equipment enables the contractor to try out new equipment without having to pay so much, which is the case with those who buy the equipment outright. There is also the condition observed by the suppliers where they expect a contractor who has leased their equipment for more than six months to make full payments for them.
In a situation where there are three contractors fighting over the same contract, the one who has bought all the equipment in his possession has only to consider the interest amount from the payments he made for the purchases to add in his calculations when he is making his proposal.
The contractor who opted to lease the necessary equipment for the job has to consider the recurring monthly payments on each lease, in his calculations for his proposal. The final contractor who happens to have rented his equipment only needs to consider the rent he shall be paying, without needing to worry about the equipment, which will not lead to any losses in case he does not make use of them when his bid is rejected.
There is also the presence of financial plans which have many options for the contractors to choose from, but will have them making payments that could go on for three to five years periods.
The major equipment manufacturers have their own financing departments, through which contractors can leas their equipment directly. They account for a considerable percentage of the market.
Banks also have similar leasing arrangements. Other banks avoid such arrangements, due to their risky nature.