Buy, Rent or Lease: Choosing the Right Equipment-Financing Strategy

May 1, 2025

Buy, Rent or Lease: Choosing the Right Equipment-Financing Strategy

Educational Sponsored Content

In the arbor industry, equipment is everything. From bucket trucks to chippers, having the right equipment can determine the safety, efficiency and profitability of your jobs. As your tree care business grows, so does the need for a smart strategy around how to acquire and manage that equipment. You’ve probably wondered, should you buy, rent or lease your equipment? The right approach can make a big difference in your profitability and ability to grow.

Each option comes with its own advantages and challenges. In this article, we break down the pros and cons of buying, renting and leasing equipment for arborists – helping you make smart choices that support your operations and long-term financial health.

Buying: Building equity and long-term value
Buying outright gives your tree-service company full ownership, and you can upgrade or sell the equipment as needed. You also gain potential tax benefits through depreciation, which can help boost your financial strength over time.

However, owning equipment also means handling repairs, maintenance and eventual replacement. For many in the arborist community, the upfront cost is a big challenge, especially when you add in ongoing maintenance costs. That’s where financing comes in. With the right partner, you can preserve cash flow, own equipment and have cash on hand when repairs or maintenance costs occur.

If you are considering buying used versus new, see the sidebar for factors to consider in making that decision.

Renting: Flexibility without commitment
Renting offers the highest degree of flexibility, making it an ideal choice for newer arbor businesses or those taking on seasonal or specialized work. If you only need a specific vehicle or specialized piece of tree care equipment a few times a year or during a busy season, renting lets you use the equipment without having to pay for it year-round. It’s also a useful way to fill gaps during unexpected breakdowns or project spikes, and often includes maintenance programs from the rental provider.

If you’re relying on rentals frequently, you may face availability problems during peak times. Still, renting remains a smart move for short-term projects, emergency backups or when testing out new markets. If you’re considering renting, plan ahead and reserve rentals to maximize value.

Leasing: A balanced approach for growing teams
Leasing offers a practical middle ground for arborists who need predictability and access to modern equipment without the long-term burden of ownership. With fixed monthly costs and fewer upfront expenses, leasing makes it easier to budget and scale. This is especially useful for arbor companies with growing teams or expanding service areas that need updated vehicles or specialized arbor equipment.

While leasing doesn’t build equity, it gives tree care businesses the chance to scale efficiently without tying up capital. And when the lease term ends, you can upgrade equipment or pivot based on your evolving needs.

Plan for today, build for tomorrow
Choosing between buying, renting or leasing isn’t just about what’s cheapest; it’s aligning your equipment strategy with your business plan. Being strategic with your resources can help you stay competitive, flexible and financially strong, no matter where you are in your growth journey.

Cori Miller, certified lease & finance professional (CLFP), is marketing manager with AP Equipment Financing, an 11-year TCIA corporate member company based in Bend, Oregon. AP Equipment Financing is a subsidiary of Tokyo Century (USA) Inc., the U.S. subsidiary of Tokyo Century Corporation. Tokyo Century Corporation, headquartered in Tokyo, Japan, has 7,800 employees and offers specialty leasing and other high-value-added financial services in more than 30 countries.

TCI Magazine’s Sponsored Content is a feature available only to TCIA corporate members. This article is sponsored by AP Equipment Financing. Contact advertising@tcia.org for more information.

When to Buy Used or New Equipment

By Adelyn Hildebrandt

As demand for your business continues to increase, you may find yourself seeking to purchase equipment to meet these growing needs. While some businesses have sufficient cash on hand to purchase equipment outright, many opt to secure financing. Besides selecting the right finance company, the most significant decision you’ll likely face is whether to invest in new or used equipment. There are advantages and disadvantages for both.

Cost
While seemingly simple, it’s crucial to carefully consider both current and future costs associated with the equipment. New equipment typically requires a higher investment and depreciates more rapidly. Despite this, numerous companies favor new equipment for its reliability and generally longer lifespan. Opting for used equipment offers a lower initial cost but could potentially become more expensive if extensive maintenance is required. If the equipment is well maintained, you can greatly benefit from the lower initial cost. Buying used also means your equipment depreciates much slower than a new machine fresh off the lot.

Financing options
Since most companies rely on financing to buy equipment, you may be wondering which is easier to finance: new or used? Generally, newer equipment is easier to finance at favorable rates because it is viewed as more reliable. Lenders often view new equipment as a safer investment due to its lower risk of breakdowns and higher resale value.

In contrast, used is viewed as a “higher risk” and often comes with higher interest rates and shorter terms. Lenders are cautious about potential maintenance costs and may not finance older equipment. Although used equipment may incur higher interest rates, its monthly payments are often significantly lower. With these challenges in mind, financing used equipment can still be a smart move for your business if you are aiming to minimize your overall costs or need equipment for shorter-term projects.

When deciding between financing new or used equipment for your growing business, it’s crucial to weigh both financial and practical considerations. New equipment promises reliability and lasting benefits, yet it requires a bigger overall investment and loses value faster. On the flip side, opting for used equipment can save money, but it could mean more upkeep and might come with higher financing costs. Understanding your business’s unique needs, financial situation and future plans is key. By calculating all expenses, like maintenance and potential resale value, you can make a choice that fits your business’s growth and daily operations, whether you prioritize immediate savings or long-term dependability.

Adelyn Hildebrandt is marketing coordinator with AP Equipment Financing.