Should You Rent or Buy a Skid Steer for Your Business?

When contractors and fleet managers weigh whether to rent or buy a skid steer, the answer depends on usage frequency, total cost of ownership, and which responsibilities they want to manage independently versus hand off to a dealer.

Several cost and ownership factors can help you choose the right path.

Initial Investment vs. Ongoing Rental Fees

Buying a skid steer requires working capital. Skid steer financing spreads the cost out over time while you slowly build equity. A skid steer rental will cost your business per day, week, or month based on the rental terms, but dealers like Thompson Rents can structure rates so that you pay only for the time you need.

If your equipment usage is seasonal or project-based, renting helps prevent you from paying for equipment that sits idle. If you are running the machine multiple days per week, year-round, ownership allows you to spread fixed costs across more billable hours.

Maintenance and Repairs

When you own equipment, you are responsible for scheduling maintenance and repairs. A hydraulic issue can take a machine out of service when you least expect it. This becomes less of a problem when businesses have more than one skid steer in their fleet.

When you rent from Thompson Rents, maintenance and repairs necessary within the rental period are included in your agreement. Each skid steer rental undergoes an inspection prior to deployment.

Opportunities for Tax Benefits and Resale Value

If you are deciding when to buy a skid steer, know that purchasing equipment outright often provides tax advantages for businesses. Section 179 deductions may allow you to write off some or all of the purchase price for qualifying equipment in the year you place it in service. Consult with a tax advisor to see how tax benefits apply to your situation. Additionally, should you decide to sell a skid steer down the line, a well-maintained Cat^® skid steer retains value.

Renting leaves you unable to build asset value, but the benefits of renting a skid steer include preserving working capital for payroll and materials and accessing the latest equipment technology inside and outside a cab.

Attachment Needs and Fleet Consistency

If you have already invested in attachments that fit a specific machine type, owning a skid steer compatible with those attachments gives you more options during projects.

You might also explore a skid steer lease versus buying, as some lease structures offer end-of-term purchase options. This is effective when you need a skid steer but are unsure whether you want to keep one in your fleet.

Get a Rental Quote or Learn About Financing Today

Thompson Tractor is the exclusive Cat dealer for Alabama and northwest Florida. Whether you need a Thompson Rents machine with included maintenance or want to secure financing to buy a new or used skid steer, our team can walk you through the advantages of each option and help you reach a well-informed decision.

Get in touch with us to request a rental quote or discuss purchase options.