Getting started with heavy equipment: what to look out for, and what to expect

Starting in the heavy equipment industry can feel like a big step, whether you’re expanding your business, taking on a larger project, or just getting into the game. With so many factors to consider (new vs. used, buy vs. rent, and financing options like Section 179), it’s important to understand your options before deciding.

How to Choose the Right Equipment for Your Job

Choosing the right equipment for your job can be one of the biggest challenges when starting out in heavy equipment. A lot depends on the type of work you plan to do, the size of your projects, and how much flexibility you need in terms of machinery. For example, if you're diving into landscaping, you need to think about whether you'll be working mostly on hardscapes, softscapes, or both, this will change what kind of equipment is essential for you.

1. Define Your Core Services and Needs

Before you even start looking at equipment, take a step back and define what kind of work you’ll be doing most often. Are you planning to focus on earth-moving, demolition, or landscaping? For instance, a landscaper who plans to do hardscapes will need more specialized equipment like a skid steer with certain attachments, whereas a landscaping business focusing on maintenance or softscaping might prioritize lighter, more versatile machines like mini excavators or compact tractors.

And if you’re in an area where your work changes with the season or you plan to grow rapidly, getting versatile machines and attachments is something you’ll need to consider.

2. Estimate Your Workload and Project Size

Next, think about the size of the jobs you'll be tackling. Larger projects with heavy-duty tasks might require bigger, more powerful machines, while smaller projects could be managed with more compact, cost-effective equipment. This might seem obvious, but you don’t want to choose a machine and it be underpowered for the tasks you’ll face.

The size and type of equipment you choose will also depend on how frequently you expect to use it. For example, if you’re taking on bigger jobs but only once in a while, renting may be the more affordable option rather than buying.

3. Consider Future Growth and Flexibility

If you plan to scale your business or take on various types of projects, you might want equipment that is versatile or modular. Buying multi-purpose equipment (like a skid steer with various attachments) can allow you to adjust your capabilities as your business grows, without needing to invest in completely new machinery every time your scope changes.

4. Factor in the Total Cost of Ownership

Beyond the upfront purchase price, remember that there are ongoing maintenance, repair, and fuel costs. It’s easy to get caught up in the sticker price of a machine, but understanding its long-term operating costs is just as important. Also, consider how much downtime your machine will have. Reliable, higher-quality machinery might have a higher initial price but can save you more in repairs and downtime in the long run.

New vs. used: Is the price difference worth it?

When buying equipment, you’ll likely first choose whether to go for new or used. Both have pros and cons, but understanding the whole picture can help you make the best decision.

The warranty and machine condition play significant roles in whether the price difference between new and used is worth it. If you plan to rely on the equipment heavily, sometimes that extra investment in new equipment can save you money and headaches in the long run.

Buying vs. Renting Heavy Equipment

Another major decision is whether to buy or rent. This is a common question for businesses growing quickly or taking on larger jobs.

Understanding Section 179 and Maximizing Your Tax Benefits

If you’re purchasing equipment, don’t overlook the benefits of Section 179. Section 179 of the IRS tax code allows businesses to deduct the full cost of qualifying equipment in the year it’s purchased, rather than depreciating it over several years. This can be a game-changer for businesses looking to reduce their tax burden in the year they invest in new or used equipment, and a great opportunity for new and expanding businesses.

How it works

• New or used equipment qualifies for Section 179, as long as the equipment is used for business purposes.
• You can deduct up to $1,220,000 [in 2024] of equipment purchases in a given year, subject to certain limits and thresholds.*
• Bonus depreciation also applies, allowing you to deduct a significant percentage of the equipment’s cost in the first year.

Section 179 can provide substantial savings and tax benefits for businesses looking to expand or upgrade their equipment, making getting the equipment you need easier without as much financial strain.

A friendly reminder that we are not tax professionals, and you’ll want to speak to yours about how Section 179 can help your business.

*This amount changes every tax year, so be sure to review the IRS website and talk with your tax professional.

What to expect from your dealer and navigating the buying process

Once you decide whether to buy or rent, and whether you’re going for new or used, the next step is talking to a dealer. Here’s what you should expect:

Transparency

A reputable dealer will walk you through your options and clearly explain the pros and cons of each. They should offer insights into warranties, financing options, equipment upgrades, manufacturer differences, and any potential costs for repairs or maintenance.

Custom solutions

If you’re taking on a larger project, expect your dealer to offer customized solutions, whether recommending specific equipment or helping you expand your fleet based on your needs.

Service and support

After the sale, you should expect strong support. A good dealer will provide ongoing service, repairs, and maintenance to ensure your equipment stays in top condition.

If you feel like you aren’t getting any of these, walk away and meet with other dealers. You should expect top-notch service in all three areas. Trust your gut and work with a dealer that you’ll want to work with for the foreseeable future.

We’re here to help

Buying heavy equipment doesn’t have to be complicated. Whether you're deciding between new vs. used, weighing the option to buy vs. rent, or figuring out what equipment to buy and when, we’re here to guide you every step of the way.

We understand that every business has unique needs, and we’re happy to walk you through what you need and don’t need. Our team is committed to helping you make smart, informed decisions that will benefit your business long-term. Whether you want to expand your fleet, upgrade equipment, or take on larger projects, we'll help you choose the right machinery for the job and find the best financing options.

When you work with us, you’re not just making a purchase but building a partnership that prioritizes your success. We’re here to help you make the right choices to get the best value for your investment. Don’t hesitate to reach out—let’s discuss your needs and find the perfect solution together!