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Leasing crane for new project

Discussion in 'Financing' started by Lupin, Aug 5, 2016.

  1. Lupin

    Lupin New Member

    Joined:
    Aug 3, 2016
    Messages:
    3
    Occupation:
    Contractor
    Location:
    Toronto
    Hi,
    Hello, I'm running on 2 active cranes currently. I will need one more to complete my new project on time. I have to use the cranes for 10 months period. I'm in a dilemma whether to lease or buy new crane. This is the first big project I'm undertaking. I read a blog on benefits of leasing over buying heavy equipment. (http://www.truckloancenter.com/blog/buying-vs-leasing/buying-vs-leasing-cost-effective/). I think leasing the crane would mean, only when I have a heavy project I need to spend on it.
    I need some suggestions. I have to decide within a week.
     
  2. Junkyard

    Junkyard Senior Member

    Joined:
    Jun 5, 2016
    Messages:
    2,271
    Occupation:
    Field Mechanic
    Location:
    Claremore, OK
    In the US there are tax advantages to leasing over buying outright. Those only help if you make money lol. If the crane falls into a size that a rental outfit could provide one option might be an RPO. Basically rent it and if within the 6 months you decide to buy it a predetermined portion of your rent goes to the purchase. All the terms of an RPO are negotiable so don't be afraid to haggle with them. Nothing is set in stone. Kind of like saving up the down payment so to speak. With oil and gas slow I bet there are some places ready to wheel and deal. Probably some idle stuff down near PA and OH. I'm sure there's some iron idle in western Canada too. Only potential challenge is if you want a crane that's not normally in a rental fleet somewhere. Heck there might be another crane company with idle equipment that would rent to you. I've had success with all those over the years with cranes and trailers. Just out of curiosity what size machine are you looking for?

    Junkyard