This Hazelbank Financial article answers how contractors in Kearney, Nebraska compare leasing and financing a skid steer. It covers Buffalo County, NE construction figures, how loans and leases differ, a labeled side-by-side example, hours and usage, tax questions for the accountant, a checklist and contractors' questions.
Equipment Loan vs Lease: The Direct Answer
With a loan, the contractor owns the skid steer from the start and pledges it until the last payment. With a lease, the lessor owns it and the contractor pays to use it; at the end the contractor may return it, renew or buy it at the price the lease sets. Which costs less depends on the numbers in each offer.
Equipment financing in Kearney, NE sets out both routes for every kind of equipment.
Skid Steer Buyers Among Buffalo County, NE Contractors: The Census Counts
Buffalo County, NE had 223 construction employers with 1,237 employees in 2023 (County Business Patterns 2023), and Nonemployer Statistics separately counted 546 construction businesses without paid employees in 2024 (Nonemployer Statistics 2024). The Building Permits Survey counted 132 new housing units authorized in the county in 2025 (Building Permits Survey).
Financing for contractors in Kearney, NE covers the trade's other funding needs.
A Skid Steer Loan and Lease Side by Side
Illustration only, invented figures: a skid steer costs $64,000. With a loan, the contractor puts $6,400 down and finances $57,600 over 48 months at an invented 9.5% annual rate: about $1,447 a month, about $75,860 in all, and the machine is owned at the end (our arithmetic).
With a lease, the contractor pays an invented $1,150 a month for 48 months and a $12,000 buyout: about $67,200 in all if it buys the machine (our arithmetic). In this invented case the lease costs about $8,660 less to end up owning the same machine, and it starts with no down payment.
Hours, Usage and the Lease Terms That Matter
Some leases cap the hours a machine may run each year and charge for hours above the cap. Illustration only, invented figures: 30 hours over the cap at $95 an hour adds $2,850 (our arithmetic). A contractor running the machine hard should price that clause before signing.
Return conditions matter too: a lease can charge for wear beyond a stated standard. Read who pays for maintenance, repairs and insurance under each offer.
When a Lease Can Make Sense
- Cash is better kept for payroll and materials than spent on a down payment.
- The contractor wants to replace the machine with a newer one at the end of the term.
- The work the machine is needed for is tied to a contract with a known end.
When a loan can make sense: the machine will be kept for many years, used heavily, or modified with attachments the lessor would not allow.
Attachments, Trailers and the Whole Package
A skid steer earns its keep through attachments: buckets, forks, augers, grapples, trenchers. Each one adds cost, and some are bought later as jobs require them. A trailer to move the machine between jobs is part of the package too.
Price the package as it will actually be used. A lease may cover the machine and a standard bucket but not the attachments, which then need their own funding. A loan can include attachments bought at the same time from the same quote. Adding them up front lets the two offers be compared on the same equipment, rather than on a bare machine that cannot do the work.
Taxes and the Books: A Question for the Accountant
How a lease or a loan is treated on the books and for taxes differs, and the answer changes the after-tax cost. That question belongs with the contractor's accountant before signing, not after.
Used Skid Steers: Hours, Inspection and Resale
A used machine with low hours and a clean service record secures a loan more easily than one with heavy use. Get an inspection or a dealer condition report, and keep the serial number and hours on the request. Some lessors limit leases to new or nearly new machines.
A Checklist for Comparing Skid Steer Offers
- Get the price, or the listing with hours for a used unit.
- Total every payment, the down payment, fees and the buyout for each offer.
- Read the hours cap, wear standards and maintenance terms on the lease.
- Ask the accountant about tax treatment.
- Set each payment against a weak month.
- Phone (308) 310-7648 or send the online form.
A term loan fits a larger purchase that mixes several machines and a trailer.
By Hazelbank Financial · Updated
