AAC ComparisonRent-to-own vs bank finance vs hire
Three ways to put a machine on site, compared on outlay, deposit, ownership and credit basis. Rent-to-own applies to new machines only. Used stock is standard rental.
Subject to approval. T&Cs apply.
Full comparison
Illustrative comparison. Subject to approval. T&Cs apply.
| Hire | Bank finance | Rent-to-own | |
|---|---|---|---|
| Machine condition | New or used fleet | New or used | New machines only |
| Deposit | None typically | Usually required | Indicative deposit portion |
| Term | Day / week / month | 36–60 months | 36–60 months |
| Monthly outlay | Highest on sustained use | Lowest where credit allows | Between hire and bank finance (indicative) |
| Ownership at end | Hire company keeps it | You own it | You own it per the agreement |
| Credit basis | Account or prepayment | Full credit assessment | Assessment — subject to approval |
| Best when | Utilisation is uncertain or short | Credit lines are open and priced well | The machine is on site continuously |
| Balance sheet | Operating cost | Asset and liability | Per the signed agreement |
Hire
Works for you
- · No capital commitment
- · Swap classes per job
- · Maintenance sits with the fleet owner
Watch for
- · Nothing owned at the end
- · Cost climbs with utilisation
- · Availability is not guaranteed
Bank finance
Works for you
- · Asset on your balance sheet
- · Competitive pricing where credit is strong
- · Long, predictable terms
Watch for
- · Full credit assessment
- · Deposit usually required
- · Ties up existing facilities
Rent-to-own
Works for you
- · Monthly spend works towards ownership
- · New machine with a service plan
- · 36–60 month structures
Watch for
- · New machines only
- · Assessment applies
- · Term commitment required
Who each route suits
Hire suits short contracts, uncertain utilisation and one-off specifications where the machine leaves site with the job.
Bank finance suits established balance sheets with open facilities, where the pricing on offer beats the alternatives and the asset will be redeployed across multiple contracts.
Rent-to-own suits contractors whose machines are effectively permanent on site, who want a new machine under warranty with a service plan, and who would rather have the monthly spend build ownership. New machines only, subject to approval, T&Cs apply.
Run your own numbers with the finance calculator or the cost-per-hour calculator.
Subject to approval. T&Cs apply.
Rent-to-own applies to new machines only. Used stock is standard rental.
All monthly amounts shown on this page are modelled, indicative figures generated from a capital value, an indicative deposit portion and an indicative rate. They are not quotations, offers of credit or confirmation of availability. Final structure, rate, deposit and term are confirmed in writing after assessment.
Comparisons between hire, bank finance and rent-to-own are illustrative and assume the same capital value and term. Individual outcomes depend on the machine, utilisation, contract structure and the outcome of the assessment.
Ownership transfer at the end of a rent-to-own term is governed by the signed agreement. Availability of any machine class in any metro is confirmed on enquiry.
Campaign enquiries are handled by IronYard Sales — 072 027 4826 · info@ironyard.co.za.