Loan or Lease: Financing Options for Your Next Construction Equipment Investment

When you need construction equipment for your job site, what is the best way to pay for it? You could buy the equipment outright, but this option might not fit your cashflow or financial priorities.

Many equipment retailers offer loan or lease options, and the one that is right for you depends on your unique business needs and goals. Below, we’ve outlined some of the different finance options that could be right for your company.


With a loan, you can own new or used equipment and pay for it over time. Because the equipment belongs to you, you can use the equipment without the restrictions that may come with a lease.

Loans generally require a down payment in the form of cash, trade-in, or rental equity. You will pay off the remaining balance in monthly installments (or sooner if you wish), and many lenders offer flexible payment plans. These monthly payments can be higher than lease installments, but the equipment is yours to do with as you please, for as long as you want.

Loans offer both ownership and equity, which means you can get to work quickly and build equity at the same time. If you decide to sell your machine in the future, the profit is yours to keep.


If you enjoy the benefits of upgrading your machinery and its technology every few years, or if you want to keep monthly payments low to free up cash for other priorities, an equipment lease might be your best bet. A lease may also be the most suitable option if you only need the equipment for a short time.

With a lease, you do not pay for ownership – you only pay for the time you use the equipment. Flexible return and purchase options let you turn in your equipment early or keep it longer. If you decide to purchase the equipment, you can typically buy it through the lease’s end-of-term payoff.

Contact Us For All Your Equipment Needs

When you choose a piece of equipment, you take your time to research the right features and options for your business. This diligence is just as important when you evaluate your financing options.

There are many options to consider, and sorting through them can be confusing, but our team of experts at Carter Machinery is here to help. We understand your business and will work with you to develop a plan that meets your needs and budget.

Contact your local Carter Machinery today to see how we can help you choose the best financing plan for your business.