Financing Heavy Equipment

When you need to repeatedly use heavy equipment, choosing to purchase the equipment can be a much less expensive option than renting. But buying heavy equipment can still put a dent in your wallet. Luckily, there are financing options available that will make buying heavy equipment a realistic option!

Do Your Research 

Take some time to explore the different equipment options and weigh your specific needs. Knowing what kind of equipment you’re investing in will help the process go smoothly.

As you gather information, pay close attention to the pricing of each model. Oftentimes the equipment type, brand, size, and style will determine the asking price. When you know the specifications you need, it will be easier to identify the average cost so that you can budget for the equipment financing agreement.

Budgeting

Financing a piece of heavy equipment is a big financial choice, so you need to create a firm equipment financing budget. Do some research online to figure out a ballpark price for the equipment, then crunch some numbers. You’ll need to pay between 10-20% of the equipment’s full price as a down payment at the start, then pay off the rest in monthly installments. Try to browse loan options so that you can get an idea about how much they will cost in total, with interest and monthly payment amounts. You should also factor in things outside the loan like regular maintenance, fuel, and equipment accessories. 

Lenders

There are a number of financial institutions out there that will offer you a loan. However, remember to pay attention to the fine print and various stipulations of the equipment financing agreement. Banks and credit unions might offer you lower rates, but this almost always comes with the stipulation that your purchase is put up for collateral. This is called a secure loan and might be a dealbreaker for some people. If this is the case we encourage you to review dealerships and third-party lenders who are more likely to offer unsecured loans. 

Ready to purchase your own heavy equipment? Then stop by Tatum Motor Company in Anderson, Missouri, or Tontitown, Arkansas. We proudly serve those in Fayetteville, Arkansas and Joplin, Missouri, and surrounding areas.