Case takes next step on long-term rentals
By Murray Pollok20 February 2023
Case Construction-owned stores in France and South Africa started renting large earthmoving equipment at the beginning of this year following the rental launch in Germany in 2022.
The next phase will also see Case dealers elsewhere offer a long-term rental service backed by CNH Capital, the finance arm of parent company CNH Industrial.
Graziano Cassinelli, Global Head of Rental and Used at CNH Industrial, told IRN the programme will focus on long-term rental of Case earthmoving equipment in the 15 to 40 tonne size range - mainly excavators and wheeled loaders - and will not involve other brands or types of equipment.
The initiative relies heavily on CNH Capital, which will hold machines on its balance sheet to be rented to dealers and end customers through 12 to 60 month leases.
CNH will deliver machines to the dealers, who will then sell them to CNH Capital for long-term rental back to customers or dealers. CNH gives the name ‘Rental Mechanism’ to this scheme.
This arrangement will be used throughout Europe and in North America - where it will be launched in April - but not in France and Italy, where accounting procedures will require dealers to provide the equipment.
Customers will have the option to buy machines at the end of the rental period “at a proper market residual value”, said Cassinelli.
In the case of the three factory-owned stores in France, Germany and South Africa, the aim is to have a combined fleet of 120 machines by the end of this year, and ultimately each could have a fleet of 100 machines.
Cassinelli said Case dealers and stores were not competing with independent rental companies but rather offering a complementary, rent-to-sell option for larger machines that is already provided by other OEMs.
“We will rent because all OEMs offer this service,” said Cassinelli. “Our aim in rental is to offer a complementary service. An OEM is not a rental company, that is why our model is to support our dealers and support independent rental companies.
“For us, independent rental companies are an asset - it is part of our strategy to support them. But we have to compete against other OEMs.”