A skid steer or tractor with a snow blower is a common sight during Canadian winters. Many businesses already lease a tractor, but when it comes to the snow removal attachment – whether a snow plow (straight, V-plow, winged), snow blower, snow pusher, or rear-mounted blade – it can be harder to decide whether to lease or buy.
Here we’ll explain the advantages and disadvantages of each approach, so you can decide on the best way to get your business the equipment you need.
Find out how to finance the right attachments to cope with the wild winter weather in Quebec, New Brunswick, and elsewhere in the Great White North.
Deciding how to finance your snow attachments
When commercial snow removal contractors consider fleet financing, the conversation often begins and ends with the tractor or truck—the fixed asset that provides the power. However, the most critical financial decision is often found at the “business end” of the operation: the plow, the pusher box, or the snow blower attachment.
Unlike the main power unit, which is a long-term capital investment designed for a slow rate of depreciation (often used year-round for versatility), the attachment is a high-risk, variable-cost item. It is directly exposed to severe wear-and-tear, subject to heavy impact damage, and prone to rapid technological iteration as manufacturers constantly release more efficient designs (e.g., sectional plows, self-leveling pushers). This means the equipment you buy today could be outdated or require expensive repairs much sooner than the tractor powering it.
This inherent variability forces the core question for every profitable snow operation:
Should you buy the attachments to own a long-term, depreciable asset? Or should you lease them seasonally to save capital and gain access to the newest tools?
Option 1: Buying and owning the snow removal attachment
There are pros and cons to purchasing a snow removal attachment. Here are the main points to keep in mind:
Advantages of buying snow blower attachments
- There’s long-term value in purchasing durable, heavy-gauge steel attachments, as the cost per hour of operation may drop significantly over a 5-10 year life (if used and maintained responsibly).
- The purchase cost can be depreciated via Capital Cost Allowance, reducing taxable income.
- If you own the attachment, you have complete control. You’re free to weld, reinforce, or modify it as you see fit.
Disadvantages of buying snow removal attachments
- A big purchase is a significant expense that many businesses cannot afford.
- When you own the equipment, you need to store it during the off season, which can be pricey for large pusher boxes or specialized blowers.
- Owning the attachment means you have full responsibility for repairs, maintenance, and replacements.
So, who should buy their snow removal attachments?
Operators with consistent, high-volume contracts requiring a single, proven type of attachment (e.g., a large pusher box) will benefit most from owing their equipment.
Option 2: Seasonal lease of a snow removal attachment
There are pros and cons to leasing a snow removal attachment also. Consider carefully before making a decision.
Advantages of a seasonal lease for an attachment
- With a lease, you can easily swap between different types of attachments (e.g., a high-volume rotary blower for open lots vs. an articulating V-plow for narrow lanes) without long-term commitment.
- You can also lease for a short term to try out new or different equipment (e.g., self-leveling plows, new pusher designs) before making a major purchase commitment.
- When you lease, the monthly fees are treated as a simple operating expense, which simplifies yearly budgeting.
- Rental costs are generally 100% tax deductible in the year they are incurred.
- When you lease, there’s no large capital outlay required, preserving cash for working expenses.
- Seasonal lease contracts allow you to pay more in peak seasons and less in off seasons, which can be a practical choice for safeguarding your capital.
Disadvantages of a seasonal lease for an attachment
- You may sometimes face availability issues. The best, newest attachments might be booked by competitors during peak seasons, so plan ahead.
- If contracts run late or an unexpected snowstorm hits outside the agreed-upon rental window, fees can apply.
- Damaged equipment will incur fees.
Who should lease their snow removal attachments?
Startups and new businesses, small businesses that are growing, and businesses needing specialized tools only for short periods will likely benefit most from leasing. Leasing during times of economic uncertainty can help businesses of all types acquire the right equipment with minimal risk.
Combine lease and purchase approaches for best results
Many companies work around the disadvantages of both buying and leasing by carefully selecting which equipment to lease, and which to buy. Here’s an approach that has worked for businesses in Quebec and New Brunswick:
Step One: Buy the core attachment
Purchase the durable, high-utility attachment used 80% of the time (this might be the primary front-end pusher or standard straight plow). This maximizes CCA and ROI on the most heavily used asset.
Step Two: Rent the specialist
Use short-term seasonal rentals for niche tasks (e.g., a dedicated sidewalk snow blower or a high-capacity salt spreader). Depending on your business needs, a snow blower attachment may or may not be a “specialist” piece of equipment. Other types of specialized winter equipment that are often leased are motor graders and wheel loaders.
Step Three: Lease-to-own attachments
Choose a capital lease for high-value attachments that you intend to keep long-term, so you can benefit from lower upfront payments while building equity towards the final buy-out.
5 Tips for deciding between leasing and buying attachments
- Remember to compare first cost and Total Cost of Ownership to get a clear picture of how to make your investment go farthest.
- Calculate the combined cost of storage, off-season maintenance, and depreciation vs. the cost of returning a rental.
- Analyze the attachment’s expected lifespan against its CCA/depreciation schedule to determine the true cost of ownership.
- Do an equipment needs assessment to make sure you are getting the right attachment(s), and decide whether you want new or used equipment (both can be leased).
- Always consult with a financial advisor or an accountant to understand the specific tax and accounting implications for your business before making a final decision.
- Take our short quiz to see if renting or leasing heavy equipment might be the best option for your business.
Soluco provides financing solutions for snow removal attachments to businesses across Canada
Canadian winters can be unpredictable. Businesses that need access to the right snow removal equipment need to consider their own priorities in addition to the realities of both leasing and buying, before making a decision.
At Soluco, we offer high flexibility, lower monthly payments, and competitive pricing. Let us provide you with better equipment financing services than those provided by banks and dealers.
Whether you need a simple loan to purchase an auxiliary snow blower or a seasonal lease package to diversify your pusher fleet, we can help you structure the right solution for maximum winter profitability.
Check out our Complete Guide to Winter Equipment Leasing, or contact our team for tailored advice from a financing professional today!