It’s no secret landscaping equipment isn’t cheap, especially when you’re an independent farmer or contractor. When you’re looking for the best solutions, you’ll need to look for financially responsible choices that can also manage the various tasks you do. The question today is whether you should be looking for leasing vs buying landscaping equipment. In this blog, we explain these two options, their pros and cons, and potential situations each would be beneficial to you.

Owning Landscaping Equipment

First, let’s take a look at owning landscaping equipment, and what you need to know.

Definition of Owning

Owning landscaping equipment means full ownership. Whether purchased brand-new or second-hand, there was a legal transfer of ownership from the seller to you, the buyer.

Pros of Owning

So, why would you want to own the equipment you use? There are a few good reasons for you to consider:

• Long-Term Cost-Effectiveness: When you buy equipment, once you pay the full price for it, it’s yours! You will save money long-term by not having to make monthly payments.

• No Limitations on Usage: You are free to use the landscaping equipment how you please, and as much as you’d like. Some rental agreements have restrictions, but when you own your equipment, you make the rules.

• Potential Tax Benefits: Owning equipment that depreciates in value allows your business to chart this decrease and become eligible for tax deductions. This happens because depreciation is calculated as an expense and lowers your total taxable income.

Cons of Owning

There are drawbacks to owning your own landscaping equipment that you should be aware of:

• High Upfront Cost: As we mentioned before, landscaping equipment has a price tag on it. When you buy this equipment, you can expect a substantial upfront bill.

• Responsible for Maintenance and Repairs: If your equipment breaks down, is damaged, or needs preventive maintenance, that responsibility is on you. You’ll need to schedule and pay for that work to be done.

• Resale or Obsolescence Risks: Obsolescence risk, or the risk of your equipment becoming out of date, can reduce your profitability as a business compared to your competitors, who may have more modern equipment. This risk can damage your business and hurt the resale value of the landscaping equipment.

Recommended Situations for Owning

Now, with this more thorough understanding of owning landscape equipment, in what situations or scenarios may owning be beneficial or necessary? Here are a few examples:

• Established Businesses: For businesses that are firmly established, have stable financials, and are comfortable with their operating costs, they may find buying their own equipment to be ideal. They can afford the high upfront cost.

• For Long-Term and Frequent Use: In some scenarios, when you simply need a certain piece of equipment in the long-term, and will be using it often, you may just be better off dropping money on it now to save in the future.

• Need for Custom or Specialized Equipment: Are you looking for a custom solution for your business? If so, you may have to buy your own equipment to have it customized for your needs.

Renting Landscaping Equipment

Let’s shift gears now and look at renting landscaping equipment. What should you know about renting?

Definition of Renting

Renting landscaping equipment is typically a short-term agreement with a distributor to pay to use their equipment. Think of these agreements to be a few months at a time.

Pros of Renting

So why would you want to rent? Let’s look at some benefits:

• Low Upfront Cost: Compared to buying equipment, renting has a much lower upfront cost. If you are an independent contractor, too, you could pass on the cost of the equipment to the customer.

• Flexibility to Change Equipment: With such short-term contracts, it’s easy to switch out rental equipment to suit your needs. Unlike an owned piece of equipment, you aren’t necessarily stuck with a rental.

• Maintenance is Typically Covered: Should your rental require routine maintenance, this is often paid for by the rental company. This takes that added cost and stressor out of your hands.

Cons of Renting

Renting sure sounds great, but what are the downsides? Let’s discuss:

• Higher Long-Term Costs: If you find yourself continually renting equipment instead of buying, this will lead to higher expenses over the long-term.

• Limited Availability: You want equipment, and you want it now! Unfortunately, sometimes, especially in peak landscaping seasons, it may be difficult to get what you need when you need it. Distributors only have so many rentals available, and if they all get snatched up, you can be out of luck for a time.

• No Equity or Ownership Gained: When you own equipment, you are building equity and wealth. However, these benefits are nonexistent with rentals, as it isn’t your property.

Recommended Situations for Renting

With this information in mind about renting, what potential scenarios or situations may benefit from a rental? Here are a few:

• One-Time Projects: If you need a piece of equipment for only one short-term project, or even if you only use it once in a blue moon, you probably don’t need to buy that equipment. This is a great time to rent what you need.

• To Test New Equipment Before Purchase: Listen, we know buying a new piece of equipment is a huge deal and comes at a price. You may want the extra reassurance that your potential investment is the right one, and you’ll want to try it yourself. Before making the big buy, you may be wise to rent and test, to make sure you’re making the right purchase.

• When Additional Equipment is Needed: Sometimes in the busiest times of year, you can find your business up to its neck in work and projects. It’s at times like this that you may wish you had one or two more pieces of equipment, make sure everything gets done as soon as possible. For such situations, looking into rentals can’t hurt.

Meet Your Needs with Tomahawk Attachments

You and your business have options for your equipment, whether it’s owning vs renting landscaping equipment. There are benefits and drawbacks to both, and there are circumstances in which both may be preferable. What matters is you recognize these factors, and make the best choices based on your needs.

If you do find it makes sense to own your equipment, or look to do so in the future, consider Tomahawk Attachments when it’s time for you to own your own attachments! We are proud of the quality attachments we bring to the market and are ready to work with you! Check out our catalogue, and contact us with any questions!