For small contractors, every penny counts, especially where big equipment is concerned. A motor grader is a costly purchase, and buying versus leasing can have long-term financial and operational ramifications. 

Volvo, which makes solid, quality graders, has strong options for contractors, but the question is: Should a small contractor buy or lease a Volvo motor grader?

This decision depends on various factors, including the workload of the project, the elasticity of the budget, the availability of equipment, and long-term business goals.

Whether you are starting to expand your operations or looking for solutions to enhance your current fleet, it is essential to understand the pros and cons of each decision so that you can make the right decision.

For the Volvo motor grader enthusiast, this article examines key considerations for small contractors presented with the buy or rent dilemma.

Assessing Project Frequency and Scope

The first thing to consider is how frequently you really require a motor grader. Owning a grader might end up being simpler and cheaper in the long run if you frequently bid on municipal road projects, site preparation contracts, or snow removal jobs.

Through making use of the machine frequently, you can spread out the cost of purchase and possibly make it a profitable asset.

However, renting turns into a more secure and adaptable choice if your grading requirements are seasonal or limited to a small number of jobs annually.

Volvo motor graders are widely accessible through equipment rental businesses, so you can use them as needed without committing to long-term use.

Renting lowers up-front expenses and lowers financial risk for small contractors who are still developing a clientele or investigating new offerings. 

Financial Commitment and Cash Flow

Budget is one of the greatest determinants in this move. Investing in a new Volvo motor grader is major but expensive in the current market. The cheaper option of used models, however, comes at a high cost of either a huge down payment or a finance plan. 

This may exhaust the cash flow of a small contractor, especially when other capital expenses are also on the table.

Renting, however, becomes more distributed across shorter periods and most often encourages maintenance to be part of the payment. It does not require large upfront payments, and you do not need to be concerned with the aspect of depreciation.

For a lot of people, it also releases capital to invest in skilled labor or marketing, or other bids.

Nevertheless, when you need to hire a grader all the time, month after month, these rates can accumulate rapidly. The accumulation of the cost of renting can also exceed the payments that are made monthly to finance a purchase. 

Maintenance and Downtime Responsibility

If you own a Volvo motor grader, you take care of maintenance, storage, and insurance. Although Volvo machines are also considered to be durable, all equipment needs maintenance. 

Small operations with neither a mechanic nor a service department will find that breakdowns are disruptive and costly since they are not able to predict unexpected costs.

These responsibilities tend to fall to the charge of the provider in the case of rental contracts. In case of such a breakdown, they usually replace or do repairs to the machine at no additional cost. 

This minimizes your risk of incurring unexpected costs, and all your time is devoted to the delivery of the project. This is a significant benefit to small contractors who do not own the infrastructure to own the full equipment.

Nevertheless, the satisfaction of owning your grader means that the condition and whether the machine is available are under your control. There is no need to be dependent on what you can obtain at the rental yard.

Your operators will grow to become more accustomed to their plane, which increases productivity and assurance at work.

Equipment Availability and Scheduling Flexibility

In a competitive construction industry, delays equal lost revenue and strained customer relations. Leasing a grader results in availability problems. In peak season, it can be hard to find a particular Volvo motor grader. 

You may be forced to accept an outdated or inappropriate unit, which will compromise operations and grading quality.

Ownership of the machine provides clarity. You know its status and availability. This is something that small contractors want so that there is reliability. When it comes to doing fast jobs or having multiple jobs at the same time, your machine can make the difference. 

Final Thoughts

Workflow, flexibility, and strategic growth are more important considerations for small contractors. When deciding whether to purchase or rent a Volvo motor grader, than the sticker price.

If you’re ready to make a long-term investment and regularly handle grading in your business, then you should consider buying.

Renting is the best option for infrequent use, controlling spending, and lessening maintenance requirements.

In the end, either route can be wise. The most important thing is to match your decision with your current work style and your future goals.

Consider your workload, weigh the costs, and pick a path that will help you. Grow rather than just complete your next project.