To Buy Or To Lease: The Used Machinery Debate

After deciding to go the used machinery way, one of the bigger decisions you will have to make is whether to lease or actually buy the used machinery you have decided to use. Here are some important things to look at before expressly replying to the used machinery for sale sign or deciding to lease;


This is obviously the number one thing to think about; is there enough capital to buy immediately? If there is, does it make financial sense to make the purchase? When evaluating finances. Look beyond the current situation and project the costs involved into several months or years. Sometimes, the purchase might mean a large, one-time investment. This might be daunting, but think about the possibility of rental costs accumulating over time.


The decision to rent or buy depends on more than the upfront cost. You must also think about the additional costs involved in owning the machinery, versus the costs involved in the rental. Ownership brings such costs as maintenance, insurance, operating costs and fees like government licensing which vary from one machine to another. The rental costs will include all these costs, but remember the company has to turn in profits, so they likely will have purchase and ownership costs marked up. Some costs need to be considered for both rental and purchase, like fuel cost. Further, there might be tax implications or differences between rental and purchasing.


The length of the job for which the equipment is to be used is equally important when it comes to the decision whether to lease or buy. For short term jobs, where you need one off specialized equipment, then renting might make sense. The trick is that for the time the machine is rented, it must be fully utilized; otherwise you will end up paying for a machine you do not necessarily use. If it is a long project, or even several short term projects coming up, then it might make sense buying equipment. It is very likely that rental costs might add up quickly the longer the job goes on. Buying involves a one off investment and reduced costs thereafter.

At Redwood Machinery, you will find a large selection of used machinery for sale. Visit at

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