Rent, Lease or Buy?

Changing interest rates, new tax regulations, and uncertain financial policies have been common themes in today’s world. Below are some reasons to re-evaluate your financing options, which should also include consideration of the role leasing or renting can play in your fleet acquisition strategies. 

“How you financed your fleet in the past may not be what you should to do in the future,” Jamie Gibson, Global Director, Financial Services, AWP. 

Fleet Acquisition Options 

OEM-financing provides equipment owners in a niche market with several benefits. “Terex Financial Services knows the equipment and the industry, so together with our financial partners we can typically take a greater risk than conventional lending institutions. We also partner with our customers to take an equipment life cycle management approach, offering a variety of financial solutions that are flexible,” explained Gibson. 

As equipment ages, maintenance cost and down time for larger repairs tend to increase. For some customers it makes more sense to lease equipment and keep their fleets fresh reducing maintenance cost as well minimize the expense that comes with down time. In addition, some jurisdictions with stringent emissions regulations or looking to move to the new EV units, leasing may make more sense than buying. Meanwhile, renting easily fulfills short term needs when long term leases are not an option. 

Using a Combination of Financial Services 

Terex Financial Services together with its financial partners offer an array of financing solutions for all businesses which include loans, operating, TRAC and capital leases.  For municipalities we offer the traditional municipal capital lease which includes a funding out clause should funding run out during the lease term.  We can also provide FMV and TRAC leases for a municipality that may be looking to turn their fleet every so often and not want to handle the sale of asset at lease end.  

A Florida based provider of electrical transmission construction and maintenance services to the energy infrastructure industry, decided to supplement traditional secured lending it received through banks. The company used a combination of services—financing, leasing, and rental-to-purchase options.