Skid steers are versatile pieces of equipment that can be used for a variety of tasks, from landscaping to construction. And while their price tag may vary depending on the model and features, skid steers typically cost between $15,000 and $30,000.
For those considering financing a skid steer, it’s important to consider not only the upfront cost, but also the ongoing costs of operation and maintenance. For example, skid steers require regular servicing and upkeep, which can add to the overall cost of ownership. Additionally, skid steers typically have a shorter lifespan than other types of construction equipment, so they may need to be replaced more often. As a result, lease financing is often an attractive option, so the monthly costs remain static.
Here are 5 reasons why financing can be a good option:
1. You’ll have a lower monthly payment. This is because you’ll be spreading the cost of the skid steer over a longer period of time.
When you finance a skid steer, you’re effectively spreading the cost of the machine over a longer period of time. This has two main benefits: first, it lowers your monthly payments; and second, it means you can take advantage of the skid steer sooner. Of course, there are some trade-offs to consider: you’ll ultimately end up paying more interest over the life of the loan, and you’ll need to make sure you keep up with your repayments or risk damaging your credit rating. But if you’re confident you can afford the skid steer and you’re eager to get started on your latest project, skid steer financing may be the best option for you.
2. You’ll get to use the skid steer right away. There’s no need to wait until you have the full purchase price saved up.
If you’re in the market for a skid steer, there’s no need to wait until you have the full purchase price saved up. With skid steer financing, you can get the machine you need right away and start reaping the benefits of ownership. Skid steers are versatile pieces of equipment that can be used for a variety of tasks, from clearing snow to landscape work. And with skid steer financing, you can make affordable monthly payments that won’t put a strain on your budget. So don’t wait any longer – if you need a skid steer, financing is the way to go.
3. Lease financing may provide a number of tax benefits*.
Lease payments are typically deductible as business expenses. This can provide a tax break for businesses that lease equipment or vehicles. Additionally, lease financing can often be used to finance the purchase of equipment that would otherwise be subject to depreciation. This can create additional tax savings by allowing businesses to deduct the full value of the equipment over the life of the lease.
*Please consult your CPA or CFO regarding your business tax situation as this content is to be used for informational purposes only.
4. You can keep your cash flow liquid
If you’re like most businesses, you don’t necessarily want to use your cash to make a purchase. That’s where financing comes in. By financing your skid steer, you can keep your cash flow liquid and still get the machine you need.
Of course, there are other advantages to financing as well. The longer you finance, the lower your payments will be. And if you’re worried about repairs or maintenance, you can include the extended warranty coverage cost into the lease.
5. Financing can be a good option if you don’t have the full purchase price saved up yet, but you need to use the skid steer right away. This way, you can start using it and then pay it off over time.
When you lease finance a skid steer, you’re essentially paying for the use of the skid steer over time. The main advantage is that it allows you to get a skid steer quickly, without having to wait until you have the full purchase price saved up. skid steer financing can also be a good option if you plan to use the skid steer for a long time; by spreading the cost of the skid steer over several years, you can lower your overall payments.
What about used skid steer financing?
If you’re in the market for a used skid steer, you’re in luck – there are usually plenty of good deals to be had on used models. If you are considering financing, there are a few things to keep in mind.
First, skid steers depreciate quickly, so it’s important to factor in how long you will need it; skid steers have a lifespan of about 5-7 years, so it’s important to consider the total cost of ownership when considering how long to finance your skid steer.
Second, skid steers require a lot of maintenance, so it’s important to factor in the cost of repairs and upkeep.
Know your options
There’s no right or wrong answer when it comes to buying or financing. The decision ultimately comes down to what makes the most financial sense for your business. If you have questions regarding financing, contact us, Madison Capital has financed quite a few skid steers over the past 40+ years and we will be happy to provide you with answers.