How Councils Can Maximise Project Delivery Without Blowing the Budget
The benefits of using Rent to Own
Across Australia, councils face the same recurring challenge. The financial year starts with solid capex budgets and ambitious project plans, but by March or April, asset managers find themselves watching every dollar.
This cycle plays out in council offices nationwide. Communities need infrastructure maintained, roads graded, and essential services delivered, but equipment fleets are ageing, and replacement costs can derail carefully planned budgets.
The Council Equipment Catch-22
Here’s the reality most council asset and fleet managers face. Your community needs infrastructure maintained, roads graded, and essential services delivered. But your equipment fleet might be showing its age, and replacement costs can hit your annual budget like a sledgehammer.
Take graders, for example. In regional communities, these workhorses are constantly maintaining unsealed roads, especially after the wet season. But a new grader can set your budget back significantly in one hit. Traditional dry hire works for short-term projects, but when you need equipment for most of the year, those daily rates add up fast. Before you know it, the budget’s gone, and you’ve built no equity in your fleet.
A Smarter Approach to Equipment Access
This is where Yellowgate Group’s Rent Now, Buy Later solution makes sense for councils. You no longer have to choose between purchasing or dry hiring expensive equipment. Instead of exhausting your CapEx in the first quarter or stretching your operational budget thin with ongoing hiring costs, you get access to the equipment you need, with a stake in ownership over time.
Here’s a real example that shows how this works in practice. We recently assisted a joint venture between a Tier One contractor and a leading essential services provider, which was working on a major infrastructure upgrade with the City of Gold Coast. They required two Fuso Canter 6.0-tonne tipper trucks to meet their project specifications.
Within 24 hours, we had their application approved. Within a week, we’d sourced the exact vehicles they needed and delivered them to the site. Our 12-month plan gave them the flexibility to focus on their project delivery while we handled the equipment acquisition process from start to finish.
At the end of their rental term, they chose to take ownership, taking advantage of both the tax benefits and reduced purchase cost thanks to their rental rebate. The result? They got the right equipment when they needed it, maintained a healthy cash flow throughout the project, and ended up owning assets that continued to serve their business.
What This Means for Your Council
Your council can access everything from excavators and dozers for major works, to mowers and street sweepers for ongoing maintenance. Need generators for remote facilities or water pumps for essential services? We’ve got you sorted.
The beauty of our approach lies in its flexibility. You’re not locked into ownership from day one, but you’re building towards it if that’s the right choice for your situation. Every rental payment contributes to a reduction in cost if you decide to purchase, and you can return the equipment at the end of your term with no further obligation.
Beyond Just Equipment Rental
What sets us apart is our end-to-end approach. We don’t just rent equipment – we source it too. This means you get the exact specifications your projects require, whether that’s a specific brand preference or particular attachments. Our team handles the procurement process, saving your staff valuable time and ensuring you get the right gear for the job.
For regional councils, especially, this comprehensive service removes the complexity of managing multiple supplier relationships while ensuring equipment arrives when and where needed.
Planning Ahead, Not Playing Catch-Up
The most forward-thinking councils are already considering next year’s equipment needs. Rather than waiting until June, when budgets are tight, forward-thinking asset managers are planning now. This means having the right equipment ready to go without the capital hit disrupting other essential projects.
Whether you’re managing an ageing fleet of maintenance vehicles or planning a major infrastructure upgrade, our rent-to-own solution enables you to accomplish more with the budget you have.
Ready to Explore Your Options?
Every council situation is different, and that’s exactly why our flexible approach works. We’re not here to push a one-size-fits-all solution. Instead, we work with you to understand your specific needs, budget cycles, and operational requirements.
If you’re curious about how this could work for your council, We’d be happy to have a chat. No obligation, just a conversation about what’s possible when you have the right equipment partner.
The equipment your community needs doesn’t have to wait for the perfect budget year. Sometimes the smart choice is the flexible choice.
Want to discuss how Rent Now, Buy Later could work for your council? Contact the Yellowgate Group team on 1300 674 934 or request a quote to discover more about our alternative pathway to equipment ownership.