Wheel Loader Rental
One question about earth moving equipment that even experienced construction industry managers ask:
Is it better to rent a wheel loader or lease one? The answer is complex, but primarily depends on the circumstances of how you intend to use it. Most importantly, how long and in what capacity? Is your job written in stone, or do you potentially need some flexibility to cancel the contract? Are you still considering purchasing a used wheel loader?
Here is a closer look at each of those questions.
Time: wheel loader rental vs. lease
How long you need a wheel loader is the prime consideration when deciding whether to rent or lease. For short term use, a rental is better and may be your only option. Leases typically include a minimum period of several months, so if you don't need the wheel loader that long, rental is almost always your best option. You can rent a wheel loader for a day, a week, a month, or any duration in between.
For longer term use, you need to look carefully at pricing. Rental rates, prorated monthly, will be more than lease rates. However, you need to take into account that with a lease you may be required to pay for servicing and upkeep: those expenses can be overwhelming in the mid-term and not become attractive to the lease-payer until more time has passed.
So, in general, leasing a wheel loader is superior to renting the longer you intend to keep it. Any short jobs, a rental is your best (and probably only) option.
Flexibility: wheel loader rental vs. lease
Renting a wheel loader has definite advantages in flexibility. As the renter, you can cancel the contract at any time. If your job circumstances change suddenly and unexpectedly, you are not stuck paying for a machine you don't need: simply cancel the agreement and return the machine.
A wheel loader lease agreement is much less flexible. The minimum contract duration is typically several months minimum or more: if you need to cancel before then, at the very least premature cancellation fees will apply. You may need to pay the whole contract regardless. Some vendors may help you out with a sublet, but there are no guarantees. Prior to leasing, you need to be as certain as possible that the duration of your job will not change.
Costs: wheel loader rental vs. lease
Compared on a daily, weekly, or monthly basis, rental rates are higher than leasing rates. You have to pay for the flexibility you enjoy as a renter. Here are some typical rental rates:
,Daily rental rate, Weekly, Monthly
Small wheel loader, "$200-400", "$600-1,200", "$1,800-3,000"
Medium wheel loader, "$500-1,000", "$1,500-3,000", "$4,500-8,000"
Large wheel loader, "$1,000-3,000+", "$3,000-9,000+", "$9,000-15,000+"
For wheel loader lease rates, expect to save between 25-50% on the monthly rate, but remember to factor in costs for maintenance, parts, and other expenses you may be contractually obligated to pay. As you can see, the longer the lease, the more likely you are to realize a cost savings compared to renting, even with the added costs factored in.
One further consideration: some leasing companies allow you to apply leasing costs toward the purchase price. If you are considering purchasing a used wheel loader for sale, but are not certain, a lease agreement provides you some flexibility when it comes time to make a decision.
One final tip: talk with the dealer, they may be willing to add flexibility to a lease agreement, or negotiate downward the price of a rental. Do whatever you can to find an agreement that works for your needs.