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Understanding Heavy Equipment Leasing Costs: Average Rates and Ranges

Last Updated: June 12, 2023

Ashley Smith
Fact Checked By: Ashley Smith
Experienced journalist with over 12 years reporting on business and tech news.

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Heavy Equipment Leasing Average Costs #

A standard rate for leasing business equipment is $40 to $60 per month for every $1,000 purchased.

At this rate, a $5,000 machine will cost you $200 to $300 per month while a $100,000 machine will run $4,000 to $6,000 per month.

Many heavy equipment financiers and financial websites offer online payment calculators to help you estimate the total cost of an equipment lease. The Financial Calculators website offers side-by-side comparisons of buying vs. leasing costs. According to that site:

  • A $20,000 piece of equipment will cost $424 per month for a 24-month term lease. That is with a $1,000 down payment and a $500 security deposit. It also assumes an interest rate of 8%.
  • A $100,000 lease with the same terms will cost $2,315 per month.

Here are some approximate cost ranges for leasing different types of heavy equipment:

Equipment TypeLeasing Cost Range (per month)
Excavators$1,500 - $5,000
Bulldozers$2,000 - $6,000
Loaders$1,500 - $4,500
Cranes$3,000 - $10,000+
Dump Trucks$1,500 - $4,000
Forklifts$500 - $2,000
Skid Steer Loaders$1,000 - $3,500

Keep in mind that the above estimates are merely guidelines. The actual monthly rate can be much higher or lower depending on your credit score and history.

It's also important to note that you can lower the cost of you monthly payments by extending the length of the term or increase monthly payments by choosing a shorter term.

Construction Equipment Leasing

Real Life Construction Equipment Leasing Cost Examples #

  • "For my small contracting business, I leased a backhoe, small bulldozer, and skid steer loader. The 36 month lease for the $85,000 equipment was $2,500 per month." - Mike's Contracting

  • "I run a landscaping company and leased new zero-turn mowers, leaf blowers, lawn tractor, and utility trailer. The 4 year lease deal was $375 per month for the $22,000 equipment." - Sarah's Lawncare

  • "For my excavation business, I leased 2 excavators, a wheel loader, vibrating compactor, and 5 dump trucks. The 5 year lease rate is $42,000 monthly for the $3 million in heavy machinery." - Dawson Construction LLC

  • "I operate a small paving company and leased 2 pavers, 4 rollers, a milling machine, asphalt reclaimer, and patching truck. The total 3 year lease is $7,350 per month for the equipment." - Roberts Paving Inc

  • "We run a utility construction company and leased additional trenchers, bore rigs, cable pullers, bucket trucks, trailers, generators and more. Our 4 year lease rate is $14,500 monthly." - Dean Utilities

  • "I started a demolition contracting company and leased hydraulic breakers, pulverizers, grapple buckets, crushers, processors and other demo gear. My 5 year lease costs $11,750 per month." - Jennifer's Demolition Services

As you can see, leasing allows growing construction firms to take on bigger projects without huge equipment purchases that carry risk.

Fixed monthly lease costs provide financial stability.

Construction Equipment Financing Rates #

  • Equipment priced less than $100,000 usually comes with a higher finance rate - anywhere from 8% to 20%.
  • Larger, more expensive heavy equipment can generally be leased with a financing rate of 6% to 8%.

The average heavy equipment lease spans two to five years.

Because leases are easier to obtain than bank loans, the interest rates tend to be higher. But the credit and capital requirements are not as strict.

However, even some companies that are flush with capital are opting for leasing in order to upgrade their equipment every few years.

Construction Equipment Leasing Info #

Companies are increasingly turning to leasing instead of buying due to the high cost of construction equipment. Leasing allows you to get the equipment you need with little or no money down. The financing is easier to obtain than a bank loan.

Once the lease is up you can trade in your old equipment for a newer model.

Construction equipment leases are available for anything from one piece equipment that costs a few thousand to a fleet of machines costing several million.

Nearly every type of heavy equipment is available for lease:

You can opt for new or used equipment.

Because leasing heavy equipment requires little or no money down, it's ideal for companies that are low on cash or those that want to keep the cash they have in the bank.

Many leasing companies allow you to finance 100% of the costs, including tax delivery, installation, and training. However, some require a security deposit and a down payment.


Use Our Free Service and Find Equipment Leasing Companies #

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