Bulldozers are one of the more expensive pieces of equipment folks ask about.
That makes the process sometimes different than some other heavy equipment we talk aboujt.
Before we get started, if:
- You have credit over 700... and...
- You aren't a startup...and...
- You are buying new equipment from a dealer
Then you can probably get lower rates directly from your dealer...
Their rates are much lower than any bank or equipment finance company can offer you.
However, other times you finance construction equipment like bulldozers, companies that lease or finance equipment will often be who you speak to.
So, what would be the cost to lease a bulldozer?
5 Important Factors That Determine The Cost to Finance or Lease a Bulldozer
- Finance vs. lease vs. rent
- Your personal credit
- How long you've been in business
- How long you finance the equipment for
Getting Your Bulldozer: Rent vs Lease vs Finance?
If you can't get approved for financing you can always just rent your bulldozer.
The challenge with renting?
I'ts super-duper expensive.
Sometimes, it can be several hundred dollars per day (or more) to lease old equipment. With that being said, if you don't actually need your dozer very often, this can be an acceptable strategy.
If you're really planning to use the equipment though, you'll want to look into a loan or a lease (unless you've got the cash just sitting there).
The thing that makes the most difference for companies is tax treatment:
You may write off up to $500,000 of the bulldozer immediately if you do a loan, but with a lease you may write off the entire payments.
Get quotes for both to see what is better for you
Does Your Credit Affect Finance Rates on a Bulldozer?
Your credit is the item that has the largest impact on financing rates for a bulldozer.
Lower credit scores mean more risk to the lender.
Soo.... borrowers with lower credit scores see much higher rates than those with good credit.
Let's say you're financing a $100,000 loan over 5 years.
What might your monthly payments be with good, bad, or ugly credit?
- Good credit (675+) $2,300 a month (sometimes less)
- Decent credit (650-675) $2,475 a month
- OK credit (620-650) $2,875 a month
- Bad credit (600-620) $3,000 a month
Note that with bad credit, you'll often have to make a down payment or offer collateral, though it really depends on the situation.
Also, if your credit score is under 600, there are solutions available, but rates can be a little higher.
If you've got a history showing significant revenues, often times that makes up for credit issues.
Can a New Business Qualify to Finance a Bulldozer?
Often times, even someone just starting their business can qualify - but there has to be something to offset some of the risk.
If you've got good credit and substantial assets, financing can usually be worked out even for startups.
If you've got bad credit, you'll need either a large downpayment, real estate or machinery/vehicles that can be used as collateral, or a very strong cosigner to be approved as a startup.
How are Financing Charges Affected By Shorter or Longer Lending Periods for a Bulldozer?
The rule of thumb is this: if your credit is good, don't worry too much about the length of financing because with lower interest rates the impact on total financing costs is relatively modest. If your credit isn't so good, do everything you can to afford a higher payment as you'll save an enormous amount with a shorter loan term.
To get a personalized quote for a bulldozer, please give us a call at (866) 631-9996 or click on the picture below