Overview of Leasing a Skid Steer Loader
Many companies opt to lease skid steer loaders instead of purchasing them outright due to the high costs involved. Leasing offers the advantage of minimal upfront expenses, with payments spread over a period of three to five years. At the end of the lease term, you have the option to buy the machine, trade it in for a newer model, or simply return it.
The Cost of Leasing a Skid Steer Loader
The cost of leasing a skid steer loader depends on various factors, including the machine’s value, the duration of the lease, and your credit rating. For a $20,000 machine leased over five years and with good credit, expect monthly payments of around $450 to $500. The same machine leased for three years would cost approximately $700 to $750 per month. Keep in mind that prices may vary depending on the dealer and region.
Pros of Leasing a Skid Steer Loader
- Upfront cost: Leasing requires little to no money down, making it an excellent choice if you’re short on cash or need to preserve capital for other expenses.
- Fewer credit restrictions: Leasing companies are more willing to work with individuals who have less-than-perfect credit histories. Purchasing a skid steer loader can be challenging with a poor credit background.
Cons of Leasing a Skid Steer Loader
- Long-term cost: Despite the initial savings, leasing is generally more expensive in the long run compared to purchasing outright.
- Lack of ownership: With a lease, you’re essentially borrowing the skid steer in exchange for monthly payments. You don’t actually own the machine, and you may have limited control over its servicing.
Overview of Buying a Skid Steer Loader
Skid steer loaders are versatile, compact vehicles capable of handling heavy loads. They find application across various industries, including construction, manufacturing, and landscaping, performing a wide range of tasks. These machines can be adapted to different uses simply by switching attachments, making them highly versatile.
The Cost of Buying a Skid Steer Loader
Skid steer loaders are expensive, with prices ranging from approximately $15,000 to $50,000. Factors that influence the cost include load capacity and additional attachments. For instance, a 1,350-pound capacity machine may cost between $17,000 and $20,000, while a 1,600-pound capacity machine may range from $18,000 to $22,000. Heavy-duty skid steers can fetch prices as high as $30,000 to $50,000. Attachments, such as buckets, augers, and pallet forks, are sold separately and can add to the overall cost significantly.
Pros of Buying a Skid Steer Loader
- Ownership: When you purchase a skid steer loader, you have full control over the machine. You decide when and how often it is serviced, as well as when to sell it. The decision-making power is in your hands.
- Long-term cost: Buying a skid steer loader tends to be more cost-effective in the long run compared to leasing, making it the ideal choice if you have the financial means.
Cons of Buying a Skid Steer Loader
- Upfront cost: Even with financing, buying a skid steer loader requires a significant downpayment. You’ll need to have cash on hand at the time of purchase.
- Depreciation: Skid steer loaders often experience substantial depreciation in the initial years of ownership. Leasing can mitigate depreciation concerns since you can exchange the machine for a newer model after a few years.
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