RENTAL, LEASING GAIN STRONGLY

FINANCING ACTIVITY IS OFF, POTENTIAL BUYERS OF EQUIPMENT ARE LOOKING AT OUTRIGHT ACQUISITION TWICE, AND RENTAL, ESPECIALLY WITH OPTION TO PURCHASE, IS INCREASING EVEN FASTER THAN IT HAS IN THE PAST FEW YEARS. THESE ARE THE CONCLUSIONS OF CE'S FOURTH ANNUAL SURVEY OF RENTAL, LEASING AND FINANCING TRENDS AMONG ITS READERS. WHILE THE DOMINANT PATTERN AMONG CE SURVEY RESPONDENTS CONTINUED TO BE OUTRIGHT PURCHASE FOR CASH, OR FINANCING, IT IS SLIPPING. THE POSSIBLE REASON IS HIGH INTEREST RATES AND UNCERTAINTY OF MONEY. THE PERCENTAGE OF RESPONDENTS RENTING OR LEASING FROM 1 TO 50 PERCENT OF THEIR SPREAD GREW CONSIDERABLY OVER LAST YEAR, WITH A CORRESPONDING DROP IN OUTRIGHT PURCHASE AND FINANCE (THE GROUP CLAIMING NO FINANCING HELP GREW ALMOST 50 PERCENT OVER LAST YEAR). ANOTHER INDICATION ONLY A LITTLE OVER HALF THE READERS FOUND IT NOW EASIER TO FINANCE THAN A YEAR AGO. WHILE LAST YEAR THREE-QUARTERS OF THEM FOUND IT EASIER. EQUIPMENT ACQUISITION PLANS FOR THE NEXT TWO YEARS INDICATE NO INCREASE IN DIRECT PURCHASE OR FINANCING, BUT A MAJOR JUMP IN RENTAL AND SOME IN LEASING. AND EVIDENTLY RENTAL IS NOW THE ROUTE TO BUYING; THE PERCENTAGE OF USERS ON RENTAL-PURCHASE OPTIONS JUMPED, WHILE THE FREQUENCY OF PURCHASING RENTAL MACHINES AMONG RENTERS ROSE SIGNIFICANTLY. (PICKUP RATES OR 10 TO 50 PERCENT GAINED, WHILE OTHER FREQUENCIES LOST). THERE SEEMS TO BE A TREND AMONG RENTERS TO SWITCH TO LEASING. WHILE THE PROPORTION OF THESE RENTING THE MOST POPULAR TYPES OF EQUIPMENT STAYED RELATIVELY THE SAME, THOSE LEASING THE SAME EQUIPMENT GAINED CONSIDERABLY. LAST YEAR, FOR EXAMPLE, 43 PERCENT OF THE RESPONDENTS RENTED BACKHOES, THIS YEAR 40; BUT THE PERCENT LEASING WENT FROM 15 TO 21. FOR AIR COMPRESSORS, 36 PERCENT RENTED; DOWN FROM 44, BUT 15 PERCENT LEASED, UP FROM NOTHING A YEAR AGO. LEASING OF CRAWLER TRACTORS AND WHEEL LOADERS HAS ALMOST DOUBLED.

• Publication Date: 1974-6

Media Info

• Features: Figures;
• Pagination: p. 30-1
• Serial:
  • Construction Equipment
  • Volume: 49
  • Issue Number: 7

Subject/Index Terms

• TRT Terms: Alternatives analysis; Construction equipment; Costs; Economic analysis; Expenditures; Finance; Financing; Leasing; Payment
• Old TRIS Terms: Financial expenditures
• Subject Areas: Economics; Finance; Highways; Vehicles and Equipment;

Filing Info

• Accession Number: 00219521
• Record Type: Publication
• Files: TRIS
• Created Date: Jul 31 1974 12:00AM