Leasing VS buying small excavators, how should global contractors and leasing companies choose?

With the rapid development of global construction engineering, infrastructure construction, landscaping and other industries, small excavators have become popular models for equipment leasing and procurement in the North American and European markets due to their flexible operation and wide application scenarios. However, many engineering contractors and equipment leasing companies often face a key problem in the procurement process-is it more cost-effective to choose to lease a small excavator or directly purchase the equipment? This article will deeply analyze the pros and cons of leasing and purchasing to help you make a more informed decision.

1. Leasing a small excavator: flexible in the short term, but high in the long term
For companies entering the market for the first time or with short-term project needs, leasing a small excavator can indeed reduce the initial investment cost while avoiding the pressure of maintenance and upkeep. However, from the perspective of long-term operation, the leasing model has many hidden costs. For example, in North America, the daily rental of a 1-ton small excavator is about US$200-300, and the long-term rental costs accumulate far more than the purchase cost. In addition, the deployment cycle of leased equipment is uncontrollable, and the construction progress is easily affected. Especially in the peak construction season, popular equipment is even more difficult to find.

2. Purchase of small excavators: fixed asset investment, long-term benefits
Compared with leasing, self-purchased equipment can bring more long-term value to enterprises. First, after purchasing equipment, enterprises can deploy at any time according to construction needs, no longer subject to fluctuations in supply and demand in the leasing market, and avoid delays in construction due to equipment shortages. Secondly, the purchase of small excavators can be used as fixed assets of enterprises, enjoy depreciation policies, and have strong second-hand residual value. Taking Rippa 665, 670 and other models as examples, the service life of the equipment can reach more than 8 years. Even after 5 years of use, the second-hand market still has a high recycling value, which is much more cost-effective than paying long-term leasing fees.

3. Purchase small excavators to reduce operating costs and enhance competitiveness
Whether in the United States, Canada, or European markets such as Germany and the United Kingdom, the competition in the construction machinery industry is becoming increasingly fierce. For equipment leasing companies, purchasing multiple small excavators can not only reduce the long-term equipment acquisition costs, but also meet customers’ urgent leasing needs with sufficient equipment, improve customer satisfaction, and further consolidate market share. For construction companies, owning equipment means maximizing construction efficiency, avoiding the time cost of waiting for rental equipment, and having more competitive advantages in the project bidding process.

4. Rippa small excavator, high cost-effectiveness helps global customers
As a well-known Chinese construction machinery manufacturer, Rippa’s 665 and 670 small excavators have been exported to North America, Europe and other countries with strong power, stable performance and easy operation, and have been widely praised by users. Rippa equipment is not only affordable, but also easy to repair and has sufficient spare parts supply, which effectively reduces the cost of later maintenance. It is an ideal choice for construction companies and rental companies.

Leasing VS buying a small excavator, in the short term, leasing seems to be easier; but from a long-term development perspective, buying equipment is undoubtedly more cost-effective and market-competitive. In particular, Rippa brand small excavators, with high cost-effectiveness and high durability, help North American and European customers maximize their equipment investment returns. If you are considering purchasing engineering equipment, you might as well choose Rippa to take your business to the next level.