Fencing Rentals

Buying New Fence Equipment

The number one reason for buying new fencing is the fact that it comes with a standard manufacturer's warranty. The length and terms of each warranty varies greatly but is typically between one and two years, depending on the intended usage of the equipment. However, those warranties do not come without a substantial increase in cost.

Ownership and tax breaks make buying business equipment appealing, but high initial costs mean this option isn’t for everyone.

Advantages of Buying a New Fence

Ownership

Advantages of buying equipment is that, after you purchase the equipment, you gain ownership of it. This is especially true when the property has a long useful life and is not likely to become technologically outdated in the near future

Warranty

Full or partial warranties may be included with the new equipment purchase.

Tax Write off

Tax incentives are another good reason to consider purchasing equipment.

Disadvantages of Buying a New Fence

Cash Flow

Purchasing equipment may not be an option, because the initial cash outlay is too high. Even if you plan on borrowing the money and making monthly payments, most banks require a down payment of around 20%.

Credit

Borrowing money may also tie up lines of credit, and lenders may place restrictions on your future financial operations to ensure that you are able to repay your loan.

Obsolescence

If you purchase high-tech equipment, you run the risk that the equipment may become technologically obsolete, and you may be forced to reinvest in new equipment long before you had planned to.