Concrete Batching Equipment Financing - Rent-to-Own Vs Lease-Purchase.

June 8, 2021

As fast as new market opportunities are emerging in today’s “new normal”, Ready-Mix owners are being challenged to re-think production equipment needs and return on investment.  In the past, equipment rental was a quick option however the low cost of equipment financing has become the preferred way to meet growing concrete business needs.

A typical Concrete Batching equipment Rent-to-Own program would be a monthly rental rate of 7% of the equipment list price with an optional 80% of the monthly rental amount being applied towards the equipment purchase price.  In comparison a lease-purchase program allows the customer to choose a low interest short or long-term rate with no penalty for early payoff.

For example, a $106,764.00 NOBLE Vertical Guppy would have the following comparison;

$7,473.48 monthly rental.  80/20 rental terms.   Minimum 12 consecutive months.
$3,133.52 monthly payments on a 36-month lease.  $1 buyout after 36 months.

The lower finance rates can also help afford a $425,000.00 low-cost concrete batch plant; Four Agg loader fed, Two Cements, 1 Weighed Water, PJ980 Truck Collector and COMMANDbatch ticketing batch computer.

$9,541.00 monthly payments on a 48-month lease.  $1 buyout after 48 months.
$7,777.50 monthly payments on a 60-month lease.  $1 buyout after 60 months.

For doing your own “what-if” use the rates below to estimate the cost per month for financing equipment up to $1M.  Equipment pricing can be found on our product web pages.

Standard Financing Rates Rate Factor (June 2021)
24 months 3.60% 0.04325
36 months 3.60% 0.02935
48 months 3.70% 0.02245
60 months 3.75% 0.01830
72 months 3.85% 0.01558
84 months 3.99% 0.01366