Tempted to Rent or Lease Equipment? See Why Purchasing SideTool Attachments Is a More Money Wise Solution
As a contractor, you have two choices when it comes to having the best new equipment for your projects – renting/leasing or buying. It can be tempting to rent so you don’t have to deal with the costs of maintenance, but this may not be the most cost-savvy approach. In fact, investing in SideTool attachment equipment can actually result in cost savings (which means a boost in profits) once you analyze the total ownership costs. Here are some things to consider:
Tax savings – As the year winds down, this is the perfect time to rethink your equipment strategy for next year. Investing in equipment now means you can take advantage of tax advantages for 2014. You may be able to score a significant reduction in your income taxes by purchasing now. If you haven’t already used your Section 179 deduction, you can use it to take deduct up to $25,000 of an equipment purchase as long as you buy by the last day of the year. This can help you more easily afford the investment and allow you to recoup savings faster than taking annual depreciation.
Equipment price – In the short run, renting or leasing equipment may seem like a smart strategy but in the long run, it’s far from practical. The company you’re leasing from bought the equipment and then must lease it at a high enough price to generate profit. This means you are paying well in excess of what it would cost to make payments on equipment you purchased, even after you take interest into account for financing the purchase. SideTool attachments are competitively priced because we are a contractor innovating for contractors and understand the business.
Maintenance and repairs – When you rent equipment, repairs and maintenance are the responsibility of the equipment owner and so won’t come out of your pocket. However, this is another cost the lessor has factored into the lease or rental price, so you are still effectively paying it. If you own the equipment, you will have have to cover maintenance and repairs, but because you’re handling them yourself, you can be assured your equipment is in good shape and won’t fail you on the job. SideTool’s innovative design allows for less wear and tear on equipment resulting in lower repair costs.
Fuel and operational costs – Whether you rent or own traditional construction and grading equipment, fuel and operating costs are consistent. This is a real differentiator between SideTool attachment and standard equipment. Because of our drive forward technology, work can be done more efficiently which means less equipment run time, lower fuel costs and lower labor costs. This directly impacts the overall cost of ownership and makes investing in SideTool a smart money decision that cuts expenses and beefs up your bottom line.
Productivity – Calculating the cost of ownership includes estimating the number of work hours you can get out of a piece of equipment you’re considering buying. Because SideTool attachment systems allow you to work faster (by 40% on average), you’ll be able to carry out more work over the life of your equipment ownership. For example, a job that takes 100 hours with a traditional trencher, grader or blade should take approximately 60 hours with a SideTool attachment. This makes every hour using a SideTool a more profitable hour which significantly reduces your total cost of ownership.
By investing in SideTool attachments, you will see an overall lower cost of ownership than you’ll have with traditional equipment. The more efficient operation allows you to accomplish jobs faster. Drive forward technology reduces or eliminates the need for shadow operators and allows you to dedicate fewer equipment and man hours and to accept more jobs than you would be able to using traditional tools and attachments. With these reduced costs of ownerships, you can increase your profits while being able to bid more competitively.
Call SideTool today to check out our innovative attachments and see how they can boost your business and your bottom line. If you buy before the end of the year, you can take advantage of free shipping to anywhere in the Continental US on your SideTool attachment purchase. Call (206) 290-0843 click here to sign up for our newsletter to find out more about our industry innovations.