Ultimate Guide to Skid Steer Financing & Leasing

Skid steers, with their compact frames and versatile attachments, are a staple in various industries, particularly in construction and agriculture. For businesses considering adding or upgrading their skid steer loader, the decision to buy, lease, or finance can be daunting. This guide aims to simplify these choices and help businesses make informed decisions. Whether you’re expanding your fleet or entering the construction business, understanding the ins and outs of skid steer leasing and financing is crucial. This guide provides you with all the details you need to make an informed decision.

Skid Steer: A Vital Piece of Equipment

Skid steers are versatile machines, adept at various tasks from digging to material handling. They’re smaller than excavators, but their compact size often makes them preferable for tasks in tight spaces.

Costs of Skid Steers

The price of a skid steer, much like an excavator, depends on factors such as its age, hours of use, and model. While a used skid steer can range from $10,000 to $25,000, a new one might cost anywhere between $30,000 to $60,000.

Skid Steer Financing: What to Know

Skid Steer Leasing vs. Financing

While both leasing and financing have their advantages, understanding the core differences can help businesses make the right choice:

• Ownership: At the end of a financing term, the skid steer becomes the business’s asset. With leasing, you may need to return the equipment or opt for a buyout at the end of the lease term.
• Monthly Payments: Leasing often has lower monthly payments compared to financing.
• End of Term: Leasing offers flexibility to either return, buy, or upgrade the equipment. With financing, the equipment is yours after the final payment.

Skid Steer Financing: Qualifications

To qualify for financing, being in business for over two years and having a history of timely payments on prior loans is a plus. Startups or those with credit challenges might need to furnish bank statements demonstrating financial stability and regular deposits.

Down Payment for Skid Steer Financing

While some financing programs might require no down payment, most ask for one to two payments upfront, excluding documentation fees. In more complex situations, a 10-20% down payment might be necessary.

Skid Steer Financing Rates

Rates are influenced by the risks lenders perceive. Since used equipment can depreciate rapidly, lenders need to set rates that cover potential losses and yield profits.

Incorporating a skid steer into your business operations can be a game-changer. Whether you decide to finance, lease, or buy outright, consider your business’s unique requirements, financial health, and long-term goals. Consulting with a financial expert can further help streamline the decision-making process.