Benefits of Leasing Refurbished Construction Equipment

Excavators… forklifts… bulldozers… loaders… compactors… pavers… telehandlers… 

If you work in the construction industry, one thing’s for sure: you’re relying on equipment to get the job done! 

However, there is one clear trend forming here, and this is the rise of refurbished construction equipment. 

More and more business owners are opting to lease refurbished construction equipment, which has been marked as one of the main factors driving growth in the used construction equipment market, which is expected to expand at 5.8% CAGR between now and 2032. 

With that in mind, we’re going to explore the benefits of refurbished construction equipment in more detail, helping you to decide whether or not this is the best option for you. 

• It’s a Money Saver

Let’s be honest; we all want to save a few dollars, right? Leasing refurbished construction equipment makes this possible, in more ways than one!

You won’t need to pay as much upfront

When you lease equipment, you’re avoiding that huge upfront fee that comes with buying. 

Let’s take an excavator as an example here. For a new model, you’re looking at anything between $90,000 to $750,000+. 

That’s money you’re going to need to part with upfront, in one go!

Now, let’s replace the new model with a refurbished one. That will reduce the cost to around $50,000 to $300,000+, depending on factors such as make and model. 

Some good savings, right?

But here’s the best part; when you lease, you don’t need to pay all of that in one go. You’ll pay manageable monthly payments instead for the term of your lease. 

And, when you work with a reputable, long-standing provider, like Meridian Leasing, you’ll have an agreement drawn up that suits your financial situation. 

Say hello to predictable monthly payments

If there’s one thing that business owners don’t like, it’s surprises! Predictability is a blessing. This is something that’s only been emphasized more since the pandemic. 

The good news is that predictability is exactly what you’re going to get when you lease. Not only do you have the security of a fixed monthly payment, but this will likely cover all maintenance and repair requirements too. No nasty surprises! 

• You’ll Get Access to the Best Equipment

Let’s get the elephant out of the room; refurbished equipment DOES NOT equate to lower quality!

Refurbished equipment undergoes stringent quality checks to ensure high standards, and you’ll receive a warranty, just like you would with new equipment. 

The cost savings and manageable monthly payments actually mean you’re going to have access to a wider pool of construction equipment. You’ll be able to access machines that would be too expensive to purchase outright. 

• It’s a Lot Easier to Upgrade

Scalability and flexibility are the name of the game when it comes to construction equipment leasing!

One of the benefits of leasing is that you’re going to be able to draw up a contract to suit your business’s needs. So, if you only need to hire a forklift for a short period of time for a specific project, you can do so!

Also, if you find yourself mid-project and realize that your current machine simply isn’t cutting it, you can contact your equipment leasing company and upgrade – it’s as easy as that! 

If you were to buy a machine, you’d need to sell it and take the depreciation hit every time you needed an upgrade. 

• Maintenance is Often Included

You’re in the middle of a construction project. Everything is running smoothly, and you’re on time. Then, during a routine excavation task, your hydraulic excavator grinds to a halt! Nightmare!

Now, if you were to own this piece of equipment, you’d need to pay for the repair and you’d need to wait for the excavator to be fixed. If time is not on your side, you’ll probably need to rent another machine while you wait. Cost, chaos, cost, chaos! 

On the flip side, if you lease the excavator, the repair work will likely be covered in your contract. Most leasing companies will also provide a replacement, ensuring your work can continue seamlessly. 

From fluid changes and filter replacements to system diagnostics and operational checks, maintenance like this is pretty much always included! 

• Boost Your Corporate Social Responsibility (CSR) Efforts

All businesses today have a responsibility to look after the planet! Incorporating Corporate Social Responsibility (CSR) initiatives is a non-negotiable! 

Thankfully, leasing refurbished equipment can help you in this department.

By refurbishing and reusing, you’re reducing the need for new production! Think of all of the raw materials and energy needed to create just one bulldozer. You can reduce this strain on your planet by promoting this more eco-friendly model. 

• Unlock Tax Benefits

Depending on your location and business set-up, you may be able to unlock some significant tax savings by going down this route!

In the US, Section 179 of the IRS tax code, allows businesses to deduct the full purchase price of qualifying equipment (new or used) purchased or financed during the tax year. 

For 2024, the maximum deduction limit is $1,220,000. These limits are subject to change, so it’s essential to check the latest IRS guidelines.

Enjoy the Benefits of Refurbished Construction Equipment

There’s no denying that refurbished construction equipment can save your business thousands of dollars. However, a lot of people don’t realize that the benefits extend a lot further than this. From boosting your CSR efforts to scaling up with ease, there’s a lot to gain by going down the refurbished route. 

Of course, one worry that some business owners have is that they’ll suffer a lack of quality if they go down this route. However, if you purchase from a reputable source, the machine you purchase will have gone through rigorous testing and will come with a warranty too, so you have nothing to worry about.