Tag Archives: buy heavy equipment

For beginners – Don’t buy heavy equipment. Rent them

Beginners joining any profession have to be really careful on the expenses they are making on their business. They might have extremely no control on their expenses as they may not understand how to block the flow of expense. They have to take care of a lot of recurring and non-recurring expenses and while they do so, they may completely lose track of the money left in their bank account. One fine day, they may find their bank account showing very less balance and may foresee lot of expenses to clear. They may find themselves to be in a very tight position and therefore it is important that they refrain from doing any expenses that is not much needed for the smooth running of the business.

To be more precise, if you are in the construction business, you got to be more cautious than ever. For timely completion of projects, you got to possess heavy equipment that are very expensive and if you do that then you tend to spend a good portion of your money for procuring the machine. This may leave you with very little money to meet other business obligations. Hence, it is advisable that if you are a beginner in the construction industry, do not spend your money in buying heavy equipment. On the contrary, you can take them on rent. That will turn out to be a good deal for you where you do not have to spend a bounty and things will be very much in your control.

Identify the heavy equipment you may need for your project:-

It is very crucial to know what type of heavy equipment is required for your business. As long as you do not know that, moving ahead will be difficult. Take guidance from people in the industry if you have any or join some blogs where you can put your questions about heavy equipment to them and you might get real good replies which will prove to be very helpful to you. Once you have identified the heavy equipment, the next goal will be to check the rental price of the machine. Not every owner of the equipment will rent it at the same price. The rental price of the machine may vary keeping into consideration the quality of the machine, the period for which it has been used. In other words, if the machine is not much older then you may have to pay more rent. However, if it is an old piece then you supposedly have to pay less for it.

Go to online portals to check the machine:-

Owners list the heavy equipment on websites that deals with selling and renting of construction machineries. Going to such websites will be really helpful to you as you will get to see a lot of options at different prices. You can then select the one that you seek to have and speak with the owner. If possible you can negotiate the price and try to bring it lower. You will end up getting a good deal at a considerably lesser price.

Want to rent/buy heavy equipment. Avoid involving middlemen

Heavy equipment are highly expensive items and people who deal with buying, selling or renting heavy equipment usually earns good commission out of it. However, the person who has to pay commission may not find himself in a comfortable environment to pay money just to procure machines. The buyer in this case pays to two parties. First it is the seller and the next is the agent. So eventually, he ends up paying more for the same item and therefore he may not be so happy with the transaction. On the other hand, the seller also needs to pay his part of commission to the agent. This means that the agent gets a good deal of money from both the parties. His part of work was to understand the needs of the buyer and then search for a seller who is selling exactly what the buyer is looking for and ultimately introduce both the parties to each other. He needs to push the buyer a bit to buy the machine and if he gets convinced, the sale is done and he gets the commission.

The seller does not have much to lose here as he gets rid of the machine and does not mind paying someone who has helped him to get it sold. The problem is with the buyer who has to pay for the heavy equipment and also to the agent. Now by any way if he can manage to get the agent out and deal directly with the seller he does not have to pay any cut to anybody. So just pay the price of the machine and it belongs to you. The difficult part would be to locate the seller who will have exactly the stuff he needs.

Well there is a solution to this. We have many online portals that deal with buying, selling and renting of heavy equipment. So all you need to do is become a member of one such website and search for the heavy equipment that you require for your business. You will find almost everything under the sun. Right from scrapers to loaders and from CAT to Volvo, you will find a seller for all kinds of heavy equipment. The important part for you would be to join the portal that does not charge any fee from the buyer. The seller usually does not mind paying a small amount as fees to the online portal.

There are also some agents who work in the same manner as the online portals do. There is no harm in using the service of the agents as long as they do not bill you for earning commission. So you got to be pretty sure that they are not charging anything from the buyer and if they do, make it clear to them that you do not want their service as you do not want to pay commission to them. Try to avoid the involvement of middlemen ad it can save lot of your hard earned money.

Experiencing monetary crunch – Don’t buy heavy equipment. Rent it

People who are from the construction business frequently experience the problem of unable to buy heavy equipment dues to shortage of finance. They may have got big projects to work but often find themselves short of heavy equipment and when they think of buying few machines they experiences huge shortage of finance. Heavy equipment are thousand dollar items and you will not get any at a dirt cheap rate as long as it is an outdated model and is being used by none. Those types of machines will be of no use to you. It is better that they are sold as scrap.

So what can you do when you are in the middle of signing few very important and life changing projects and at the back of your mind you know that you are highly short of heavy equipment and are in no position to buy new stuffs. Well, the better way to deal with this kind of a situation is to rent some machines for the time you think you will need them to complete the project. Though you have to spend some money each and every month as paying rent to its owner but still you will be able to get your work done. Later if you feel like you can buy one such equipment you can take the call but till the time you are having monetary issues, you should not be thinking about increasing them by intending to buy more machines.

One of the most appropriate ways to take heavy equipment on rent is to do it online. There you can find numerous machines posted by various owners; all wanting to either sell their machines or rent it out. Searching for heavy equipment online will give you good enough options. You also will be able to see the pictures of the machine, read the description and analyze if this is what you should be looking at. Few online portals also allow you to contact the owner of the machine so that you can speak to him and clear your doubts if you have any. You can also try to negotiate the price with the owner only if he is comfortable in doing so.

It is very important that you estimate the duration for which you need the heavy equipment. It is very much possible that you have to contact different owners and take machine on rent from them. You may not find one person renting all the different types of machines you need. Therefore knowing which equipment will be needed when is very crucial. It is also possible that one owner has lot of machines with him but has listed only a few. You can check with him if he has more stocks and if he wishes to rent them as well. You may get all the fruits in one basket.

Last but not the least; make proper rental agreement with all the terms and conditions stated explicitly in it. This will help you to safeguard your rights and you do not have to pay more for anything that’s not mentioned in the agreement.

B&R Equipment

Loan to buy heavy equipment

Loans have become a part of life for almost every citizen of this country. The day you begin to earn, you also apply for credit cards and start buying things on credit. This is also one form of loan where you intend to pay the creditor on or before the due date. Catering to our needs, there are different segments of loans that financial institutions have come up with. You can go for home loan, personal loan, auto loan etc. People who need money to start their business can also apply for business loan and they shall get it at affordable interest rates. Though not all banks offer loans at affordable interest rates, one needs to check which bank they should go with for easy payments of installments. So for people who have just stepped in the construction business and require loan to buy heavy equipment can shop for banks who can offer money at reasonable interest rates.

Before you start shopping for banks to apply for loans, it is imperative that you check the need to buy heavy equipment for your business. You can fulfill your requirement by taking it on rent where you do not own the equipment but can use it for a year or so and then give it back to the owner. You only have to pay an amount that has been agreed upon by both the parties at the beginning or at the end of every month.

However, if you feel that renting heavy equipment is not the solution to the problem and buying one is the need of the hour then you should begin to hunt for a bank. We all want to borrow money at affordable interest rates but an application has to go through a lot of screening in order to qualify for that. It has been seen that not many people qualify for loans at lower interest rates.

Pay a fee to get loans at lower interest rates:-

At times you may not qualify to get loan at a lower interest rate. Either you credit rating is not up to the mark or there may be some reason or the other that fails you to qualify for a lower interest rate. Some banks may still qualify you provided you have to pay them a fee to get that done. However, not all banks follow this as their guideline to bring down the interest rates and it completely depends upon what the banks need to lower your interest rate. To buy heavy equipment you need to have lot of money. The ideal situation would be to use an amount that is part of your savings and the balance should be taken as loan. In this way, even if the interest rate is high you would be able to manage it well.

Improve your credit rating:-

Your credit rating plays an important role in qualifying for the bank loan. So you should ensure that you keep it clean by paying your dues in time. Likewise once you buy the machine ensure that you pay the monthly installments on time without defaulting for even a month. This will keep help you to keep a healthy credit rating.

How to purchase worthy heavy equipment

Be it a construction business that owns heavy equipment or contractors who uses their heavy equipment in various construction sites, they all are worried about one basic thing and that is have they bought worthy heavy equipment? Is the machine going to work for many years as promised by the dealer or the heavy equipment company? These thoughts do make several rounds in the mind of the person who has recently bought heavy equipment and it is also very obvious for them to worry about the worthiness of the machine. They buy heavy equipment after investing thousands of dollars and they want suitable outcome of their invested money. They just want the machine to function when it is required to.

There are few things that one needs to do before he decides to go for procuring heavy equipment. These steps are simple but many skip doing them due to several reasons better known to them.

Go for a good brand:-

Purchasing heavy equipment from a famous brand has a lot of merits. A famous brand will not afford to play around with the quality of the machine and therefore whatever they will manufacture will be of top notch quality. Though they may sound to be expensive but will be very reliable when it comes to performing on the jobsite. You may have to shell more money while buying the item but then it will save your money as far as fuel consumption is concerned which becomes another major cause of worry to the owners of heavy equipment. Moreover, they will cost less on maintenance and will be more productive unlike machines of less popular brands which start giving problem after few months of purchase.

Take valuable suggestion from industry experts:-

It makes a lot of sense to take suggestion from few people who knows the in and out of the subject and then take your call. The heavy equipment company will speak all positive about the machine but you will get to know about its negative side from industry experts who have been working on different kinds of heavy equipment for the last many years. They might be in a better position to give you valuable suggestion about a particular machine. You might also consider taking suggestions from more than one person. However, refrain from involving too many people as that might confuse you and weaken your decision making ability.

Take an expert with you to shop for heavy equipment:-

Ask an expert to accompany you whenever you decide to buy machines. This is perhaps one of the best options you can take to purchase worthy heavy equipment. It will actually allow the expert to personally check the machine and also ask certain intrinsic questions which are technical in nature that you may have skipped to ask. This will always prove to be advantageous to you. The only criteria will be that you should know he is a trustworthy guy and will not mislead you.

 

Hire, Purchase or Lease – Which One is better for Your Next Heavy Equipment Investment?

Presently, construction industry is blooming but in a slow speed. In this situation, is it better for a construction company owner to lease, procure or rent a bulky paraphernalia? According to Peter D. Gregory, the senior vice president of the reputed construction group of Atlanta commented that right now the condition of the market is tentative that’s why the construction company owners are hesitating to procure heavy equipment or go for leasing deals. Yet, the construction concerns still require bulky paraphernalia to accomplish their task on the site.

In large organisation, the construction business possessors hire equipment managers and chief financial officers to give suggestion on the issue of renting, leasing or purchasing the heavy equipment. On the other hand, in the budding construction firms, the owners alone take the decision. The presidents of some of the well-renowned construction companies stated that the decision entirely counts on the financial condition of the organisations. To determine, which one is the most suitable one needs some logical prediction and forethought. Here in the following piece, the readers will come to know the difference between the buying, renting and leasing a heavy construction equipment.

Renting, Purchase and Leasing Options for Construction Site Contractors

Rent option helps the contractors to save their capital. Often, they choose the option of renting when they require a specific item for a particular task. Some of the well established construction merchants stated that renting is more costly than lease and purchase options because it provides flexibility to the clients.

When the contractors procure heavy construction apparatus, the dealers not only proffers instant ownership but also subtracts the depreciation cost of the equipment. The interest the possessors get form the deduction helps the construction firms to conserve their tax amount. Majority of the construction organisations prefer to buy heavy equipment parts as it adds as a valuable asset in the in the balance sheet. But, the majority of the budding construction owners prefer to go with the lease option because of the Alternative Minimum Tax (AMT).

Lease is yet another option that is facilitated to the construction company owners by the dealers. It is the best choice for those organisations which are not efficient enough to utilise the depreciation. Other than ownership, this option also provides usage pact with typical no money upfront quality.

Comparison Between Lease, Rent and Buy of Heavy Construction Equipment

For long term use, the charge of the lease is much lower than the renting cost. Therefore, it is sensible for the contractors to avail the benefits of leasing heavy equipment for long term basis. If the construction company owners desire to attain the equipment, then the outright purchase technique is more economical to other alternatives.

On the other hand, for short term purpose, the option of renting heavy construction apparatus is the best. If any construction concern owner wants to go with the buy option, he/she should asses some factors like time duration of the application of the equipment and its maintenance cost.

To sum up, it can be said that all the above mentioned options of availing the benefits of heavy equipment are beneficial to the construction owners unless and until they have the skill to attain it in proper way.

 

To Buy or Not Buy Construction Equipment

It is very important that you have the right kind of equipment to make sure that your construction business is going well. It is not always the availability of capital that would determine if you should rent an equipment of buy one. It is one of the most challenging decisions that have to be taken in this business. There are a few factors that play quite an important role when it comes to the decision of either buying or renting the construction equipment. These factors are discussed as follows.

One of the factors that are to be considered is the capital. The current situation of the capital of the company is a condition that may affect the decision. If conserving the capital is felt important by the company, it should probably go for renting. There are many companies that go out of business because they fail to make payments. Therefore, if a company is going through a cash crunch it is probably a good idea to go for renting the equipment instead of making a permanent purchase and digging a hole in the company capital. Therefore, it can be said that, although, the capital is not the sole reason but is quite an important factor that may influence the decision.

The regulations imposed by the government also play a very important role when it comes to making these decisions. The rules and regulation keep changing regarding the possession of heavy equipment. Some states make the regulations much more liberal. Therefore, it depends on how the conditions are in your state that will influence the decision whether to buy or rent heavy construction equipment.

Another important factor that plays a very important role in this regard is the management of fleet. Some companies may have a high level of competency when it comes to fleet management. If the company has excellent skills when it comes to logistics, transportation, service of equipment and maintenance it is a good idea to have hundred percent ownership of the fleet. However, if the company lacks the desired amount of expertise in fleet managing, it is probably not a good idea to buy your own fleet.

Buying or renting equipment will depend a lot on the amount of risk that you are willing to take. You may not want to take risk or you may be a risk taker. However, it is always the prerogative of the businessman to take calculated risks. There are many factors that are to be considered when it comes to taking risks. If you think that the current year is going to be a good one as far as fiscal matters are in concern, you can go ahead and take risk of buying equipment. However, for those who want to check their grounds safely and take no unnecessary steps, renting the equipment is always a good idea. The production value will depend on the quality of the equipment and not on whether you have the ownership of the equipment. Therefore, when you acquire the machine make sure that you are paying money for a worthy machine no matter you buy or rent.

 

 

Are you about to purchase new heavy equipment? Check the specifications first

Among the several other businesses, construction companies are gaining the popularity day by day. It happens because of its amazing advantages that help others to make huge profit from it. Construction business is the best platform to earn huge money and create a strong position in the market. Now, if you are a new comer in this field and want to run your business successfully, then it is important to purchase required heavy equipment for your site. There are many types of heavy machinery that can be useful in construction site such as bulldozer, excavator, articulated truck and many more items. However, there are some qualities that you need to know properly before purchasing the equipment.  The most important thing that needs your concern is the specification of the equipment. Every machine comes with different specifications that you need to learn in order to match up with your requirement.

Now you must be wondering that why the specifications are so important. To know the details of its importance follow the information below-

 

  • Features of the different machine: The most important thing of a machine is its features. Without good features a machine cannot provide good job. You must know that every single machine has different features. Features play the identity role of a machine. Whether you are going to buy an excavator or a bulldozer you will have to check its different parts and features. In fact, there are different models of excavator. You will get this item is small, medium and large size. You will get it in different price as well. To know more about equipment, you need to follow its specification. It will definitely give you a clear idea about the machine.
  • Required machine: It is very important to know the specification to buy exactly what you want. If you start to gather knowledge about its different parts and specifications then you will understand its value. Thereby, the fact is that specifications help you to get your required heavy equipment.
  • Good or bad: Well, through the specification of equipment you will be able to know whether the machine is useful for your or not. If you want to use it in your work place to carry heavy loads then you have to buy such machine that can perform it smoothly. By getting the clear idea about the specifications, you will be sure whether you can work with it or not.

If you are finding the best platform to collect the proper information about different specifications of different equipment then you have to search on internet. It is the best platform that can provide you correct news regarding such equipment. There are many sites available that deal with heavy equipment. You should follow the sites. Moreover you can talk to some people who have already used such machine. They can definitely help you o