Question 1

How Does Rent to Own Machinery Work?

Accepted Answer

Rent to Own gives you a 12-month rental agreement on equipment worth $50,000 or more, with rental payments treated as OpEx instead of a capital purchase. Each payment builds a rebate toward the purchase price. At the end of the term you can buy the equipment at a reduced price using your rental rebate, keep renting, or return it with no further obligation.

Question 2

Is Rent to Own Machinery Tax Deductible?

Accepted Answer

Rental payments under a Rent to Own agreement are generally fully tax-deductible as an operational expense. This is general advice only, talk to your accountant about how it applies to your business before you commit.

Question 3

What's the difference between Rent to Own and equipment finance?

Accepted Answer

Equipment finance is a loan you repay with interest until you own the asset outright. Rent to Own is different – there's no interest, the commitment as 12 month rental, and there's no obligation to buy. Your rental payments are OpEx, not debt, and you decide at the end of the 12-month term whether to purchase, keep renting, or return the equipment.

Question 4

Can I Rent to Own Used Machinery?

Accepted Answer

Yes. Yellowgate can source and supply both new and used equipment across all major brands.

Question 5

What Happens At The End of The Rental Term?

Accepted Answer

You can buy the equipment (with rental payments accruing toward a rebate to reduce the purchase price), continue renting, or return the equipment with no further obligation.

Equipment Expertise & Guides

How Rent to Own Machinery Works