If you need to use a crane regularly on your construction jobs, then you might be considering buying one. However, before you commit to this one-off purchase, you should also consider leasing. What are the benefits of leasing the crane you need rather than buying it?
Lower Upfront Costs
If you buy a crane, then you have to pay a significant upfront cost. You might not have this money at the moment. Or, you might not want to take this amount of money out of your business. If you lease a crane, then you don't have this high upfront cost. You simply pay regular, scheduled charges to use the crane.
Versatile Ownership Options
When you lease a crane, you get to choose what happens at the end of your contract. You can choose the best option for your business and booked jobs at any given time. In some cases, you might want to use leasing as a way of buying the crane. Here, you pay a set of regular charges during the leasing agreement. Then, you make a final payment at which point you own the crane. Or, you might simply want a rolling leasing agreement. You might upgrade the crane at the end of every term so that you always have the most up-to-date equipment without having to buy it. Or, you can simply give the crane back at the end of a lease term if you no longer want it.
No Depreciation Losses
Like any other piece of equipment, a crane's value depreciates over time. You buy it for a certain amount of money. As the crane ages, it loses some of this value. So, your asset becomes less worthwhile. It doesn't hold value. If you want to sell the crane in the future, you won't get all your money back. If you lease a crane, then you don't have to worry about depreciation. You simply pay to use the crane for a set period of time.
Better Tax Breaks
If you buy a crane, then your purchase is taxable. You own the crane. However, you don't own it if you lease it. It still belongs to the leasing company. So, your accountant should be able to claim tax deductions on your payments.
No Maintenance Costs
While your contract might stipulate that you have to take reasonable care of the crane you lease, you won't have to pay maintenance and repair costs. If the crane develops a fault or needs repairs, then the leasing company takes care of this. If they can't make a fast repair, they often simply switch the crane for a new one.
For more information, contact a local crane leasing company.