Lease New or Buy Used

[Votum]

We're still in the planning stages, but hopefully next year I will get to start working on our property that we own. I have to put in a better driveway, tear down several old buildings, clean up debris piles (asphalt, & the remains of old concrete silos) and build the house. Now I know I will be able to use the equipment I already have for this job, but I also realize that they might not be the most efficent. At various points in time I see the need for a CTL, Mini-EX w/ thumb, and a dozer. I am planning on renting the dozer, unless I can a find a heck of deal and be able to use it on the farm afterwards. But when it comes to the CTL & the Mini-EX, I am really torn. I can see justification for both for min 3 years, just don't know which way to jump. Defintiely want to keep the equipment budget as low as possible. Any suggestions?

I know every thing I have listed shouldn't take 3 years as a project, however I am growing produce & perennials for both wholesale & retail on 5 acres of the property, as well as possibly working as a sub equipment operator for my current employer. And perhaps that's part of my problem. At work I have a much larger selection and budget to work with for a project similar to this.

Thanks

 

[kensnelling]

Talk to your accountant about it. As it seems that you may be using this for a commercial purpose there can be tax advantages for depriciating value owned equipment vs writing off the payments on leased equipment (and vise-a-versa).

Ken