There are many benefits to renting heavy equipment, but the downside is not gaining equity for your equipment rental dollar. However, with Camex there is a win-win alternative – a Rent to Purchase Option (RPO). Having all the advantages of renting, RPO also gives you the option to turn your rental payments into the equity or down payment needed to finance, without the risk!
Benefits of Renting Heavy Equipment
- Improved job cost accounting
- Match equipment to the specific job
- New equipment has less downtime, more productivity
- Operating and insurance costs are similar to buying
- Annual contract rental productivity cost is in line with the ownership cost
- Avoid risks of buying
Benefits of RPO
- Rental payments are expensed. Purchases are accounted for as capital expenses, whereas rental costs are allocated as equipment and supplies expenses.
- Equity build-up in the unit effectively reducing true rental cost. With our flexible RPO program, you can choose your rental rate. Lower rates keep costs down, but build less equity for future purchase; higher rates increase equity for a lower final buyout price.
When should you consider the Rent to Purchase Option (RPO)?
- When you need your heavy equipment for four months or longer
- When your CAPEX is maxed out
- When outright purchasing isn’t a feasible option at the moment
With the RPO, you can rent the equipment you need and still gain equity. In the event that you decide you have prolonged work for the unit, you can opt to purchase the rented unit and a generous portion of every rental dollar will be applied towards the purchase of that unit. Learn more about Camex Financial Services and Rental Purchase Options.