Having just returned from a 2,009-mile round-trip road trip from Kansas to East Tennessee, this editor has seen first-hand that construction projects are in progress just about everywhere, from road work, to residential and commercial building. Sure, municipal budgets have been cut, new home sales have suffered and overall construction is down significantly, but there is still work being done, equipment in use and customers who need to rent. And for rental companies in need of updating a few items in their fleets, now is an opportune time to work with equipment dealers to make a good deal.

Deals to be had include interest-free, extended-term financing or other special financing terms, over allowances on trades, significant discounts on large orders, extended service plans, rental splits and many OEM-specific offers.

Fargo, N.D.-based Bobcat Co. has a wide range of offers and special programs available such as its recent 0-percent financing for 50 months incentive, a rebate on skid-steer and compact track loaders, and 0-percent financing for 42 months on attachments.

“Bobcat is always reevaluating the market needs and creating new special offers on its product lines, and recent product introductions, such as the M-Series excavators, to help customers get the kind of offer they need to outfit their fleet with a new machine,” says Bobcat marketing manager Greg Rostberg.

Perceptions on the availability of financing to rental companies vary from manufacturer to manufacturer, but many, such as Doosan, Deere, Terex, Ditch Witch, Volvo Construction Equipment and Caterpillar, say that credit is still available.

“Success rates for credit approval have not declined since the restrictions on capital were put in place,” says Rus Warner, Doosan Infracore Portable Power's manager of global air products. “The rental industry has been pretty solid.”

Other manufacturers such as Vermeer and Thompson Pump acknowledge that the availability of credit is tighter now than it has been in recent history.

“Capital expenditures are undoubtedly less during these times and there seems to be different trigger points to release capital,” says Jay Sunderman, senior global accounts manager for Pella, Iowa-based Vermeer Corp. “As in all market segments we serve, financing has tightened and the rental market is not immune. A supplier can add a lot of value to rental store operators if they can offer special terms or can offer, or help facilitate, assistance in financing.”

Ditch Witch offers incentives and financing all year long, including extended warranty service, special preferred pricing, rental splits, and 0-percent and low-rate financing. It is currently offering no interest until 2010 on vacuum excavation systems; a vacuum excavator lease-purchase opportunity; and 0-percent financing for 24 months on trenchers, plows, compact utility equipment, vacuum excavators and the Zahn line of equipment.

The company also has a Platinum Plus card for customers to finance parts, service, rental and accessory purchases at Ditch Witch dealerships. “Ditch Witch Platinum Plus cardholders can consolidate their monthly billing, manage expenses, get detailed account information online, and receive a variety of financing promotions,” says Ed MacGregor, manager of dealer and customer finance for The Charles Machine Works, Perry, Okla.

In addition, Ditch Witch Financial Services provides the Ditch Witch dealer network with financing options that include skip-payment plans, monthly-level plans, low-and no-financing, accelerated payment plans and rental purchase transactions.

Peoria, Ill.-based Caterpillar offers its dealers and Cat Rental Store customers the Cat AccessAccount, which lets dealers authorize the account and charge it upon the equipment's return, providing customers with an extended grace period before the payment is due (30-day billing cycle, plus payment due 25 days after the billing cycle).

Terex Financial Services has rolled out several financing options to address Terex's rental customers' cash flow needs during the economic downturn. Among those offerings is a 3 Month Skip Program that allows customers to choose the three-month payment skip period that best fits their needs. TFS also offers what it calls the Cash Flow Maximizer — a program that allows customers to choose three to four months annually where their payment is reduced to 1 percent of the original equipment cost.

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