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Growing Your Equipment Fleet
Companies looking to expand their equipment fleet must take a number of factors into account when strategizing the best method for growth.
The manner with which you approach fleet growth is directly tied to how you choose to manage your capital. This approach will vary based on your business and industry.
Out With The Old, In With The New
You may want to strongly consider buying new equipment to replace your frequently used machines. Why? For one, you know you’ll get a lot of use out of them – having capable and technologically advanced machines at the heart of your operation will provide a solid foundation for upcoming projects. Second, strong financing options available on new equipment only broaden their appeal, giving you value on the equipment that will carry your business over the coming years.
Buying Used is a Solid Use of Funds
Purchasing lightly used equipment makes good business sense when you’re trying to build your fleet while staying within a tight budget. This is especially true when dealing with a reputable dealer that will assist you in finding a machine that can suit your needs. Ensure you are buying used equipment from a dealer you can trust – not all used equipment is created (or serviced) equal.
Get peace of mind with Carter Certified, our program providing you with like-new, affordable Cat® machines that meet our strict maintenance and inspection requirements. Our 12-month Powertrain & Hydraulic Warranty covers 500 hours on general construction equipment and 1,000 hours on heavy construction equipment.
Rent Or Lease In The Short Term
When you need equipment on a short-term basis, renting machinery can be an attractive option. Utilize the equipment for the project or portion of a project, and get it back to the dealer so it’s off your hands. Some business owners may balk at the upfront cost of renting. Remember, the transaction can be written off on your taxes. Leasing is another fleet solution for short-term needs, potentially beneficial to the contractor who has the option of buying it after the lease expires, if they so choose.
Construction businesses that have the most efficient fleets are likely to be the most successful operations. Do you have an appropriate number of machines? Are they the proper size for the jobs they tackle? How do they perform on fuel economy? Are maintenance costs at an acceptable level? Identifying areas your fleet needs to improve on will help you develop a strategy implementing new technological processes such as GPS tracking and software to organize maintenance and fuel consumption.
Protecting your capital with the right warranty is an important facet of growing your fleet. Not being prepared for maintenance costs can quickly cut into your budget, negatively affecting your ability to add machinery when you need it. Carefully consider what warranty coverage best suits your needs and will help you maintain capital needed to grow your fleet and bottom line.
Contact a Carter Machinery sales representative to help plan your strategy for growing your fleet.