Continuous innovation in the past three decades has seen the popularity of spray foam insulation increase tremendously. Now, it is widely applied in both residential and commercial construction sectors. Other than improved delivery technology, the rapid popularity of spray foam insulation is largely due to the amazing long-term benefits it packs. For instance, it of boasts a higher R-value, hence offers incredible energy savings and is impermeable to water, so it has no moisture problems. Therefore, if you’ve been thinking of venturing into this industry, then there is no better time than now. But as you may already know, you’ll need to invest in quality spray foam equipment. In that breath, read on spray foam machine costs associated with buying or leasing.
To Buy or to Lease?
If you are a new contractor looking to get into the spray foam installation realm, the biggest dilemma you’ll probably face is whether to buy or to lease your spray foam insulation rig. Fortunately, we are here to help you weigh both options and see what works for you.
Spray Foam Insulation Equipment Rental
Leasing or renting spray foam insulation equipment has both its advantages and disadvantages. The main advantages of leasing out include:
Less Initial Expenses
To be a fully operational SPF contractor, you will need an entire spray foam kit which usually includes:
- A proportioning machine
- Spray foam gun
- Transfer pumps
Purchasing all the above can be quite costly. However, leasing or renting allows you to acquire all you need to be up and running without having to incur the total spray foam machine cost.
Easier to Upgrade
Like any other equipment, spray foam machines are also subject to obsolescence. Leasing or renting spray foam equipment means you don’t have to worry about that as the owner often shoulders this burden. Therefore, even if the equipment becomes obsolete in your hands, you can always upgrade to better versions, and consequently, improve service delivery to your clients.
Allows You to Test the Waters
When starting a new business, you never know what may happen. For instance, you may get a better opportunity, and decide to invest in it, leaving the current idea behind. In that light, leasing allows you to test out the waters of the spray foam insulation market and see whether it is for you. If you’re not cut out for this sector, then you can easily move on without having to worry about what to do with the equipment. If it works for you, then you can always buy your own in the long run.
Spray Foam Equipment Leasing Downsides
Higher Overall Cost
The costs of leasing spray foam machines are always higher in the long run. While leasing reduces the upfront spray foam machine cost you would have incurred, it’s often more expensive. This is because you often pay interest per lease. Therefore, the total costs you incur in the long run are usually higher compared to if you had just purchased the equipment.
You Don’t Own It
Owning spray leasing equipment packs an appealing bunch of benefits. For instance, you enjoy tax deductions and also get reduced operational costs as none of the profits go to paying for the spray foam insulation equipment rental costs.
So Should You Buy or Lease Spray Foam Insulation Equipment
The decision to buy or lease spray foam insulation equipment depends on your situation. Leasing is an excellent option if you currently have limited capital and want to venture into this industry. However, buying is more advisable if your financial standing allows because:
- You enjoy depreciation deductions
- You can rent it out
- You have total control over it and can take up opportunities whenever they come up
- You can decide precisely what brand or model you want, hence delivering quality services to your clients
- You portray a professional image to your clients
- You can also lease it out
However, note that while buying is often the better option, the spray foam machine costs don’t end with ownership. This is largely because you’ll still be responsible for the operational, maintenance, and repair cost. But regardless of that, buying will always be better than leasing in the long run.