Heavy Equipment Financing That Works for You
At John Deere Financial, we understand that a construction company’s work and cash flow are seasonal, so everything we do is designed to finance you in the smoothest and most efficient way. For example, we can accept another machine as collateral for your heavy equipment loan. And if you experience a period of decreased workflow, you can avoid monthly equipment cost concerns by scheduling skip lease or loan payments.
Heavy Equipment Financing: Benefits of Loan vs. Lease
Taking out a loan to purchase and leasing heavy construction equipment both have their advantages. Which one is best for you depends on your goals as a contractor at any given time. Compare the advantages of loans and leasing to find out which one matches your needs best.
Loan Advantages
- You’re building equity - you own the equipment when you’re done paying for it.
- You can depreciate the asset.
- The equipment appears as an asset on your balance sheet.
- No limit on your equipment’s hours and wear.
- You will build equity with instalment payments.
Lease Advantages
- An opportunity to pay less upfront.
- Generally, you may make lower payments than with an instalment loan.
- Deploy equity elsewhere in your business instead of building equity in equipment.
- Pay for the use of the heavy equipment, return it at lease-end, or exercise your purchase option.
- Return machine at lease maturity, and enjoy more flexibility and potentially easier scheduled equipment replacement.
Heavy Equipment Loans or Lease? Questions to Ask†
In addition to filling out an application, start thinking about the answers to these questions before you meet with your John Deere dealer.
- How long will you need the equipment?
- Do you want to own the machine at the end of the term?
- Are you interested in keeping up with the latest technology?
- Are you more concerned about the lease rate or the overall cost?
- Are you just looking for the lowest possible payment?
Used Heavy Equipment
John Deere Financial offers competitive financing for the top-quality used construction equipment offered by your local John Deere dealer.
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†John Deere Financial does not provide legal or tax advice. Please consult a professional tax adviser or accountant for your specific needs or qualifications.