If it feels like heavy equipment costs more this year than it did last year, that's not just a feeling. Tariff policy, tight material supply, and ongoing inflation across steel, aluminum, and manufacturing inputs have pushed both new and used equipment prices higher in 2026, and North Dakota contractors and farmers are feeling it every time they get a quote. At Bison Machinery, we've had more customers than ever walk into our Jamestown and Casselton locations asking the same underlying question: with prices where they are right now, does it still make sense to buy, or is renting the smarter play this year?
The honest answer is that it depends on your specific situation, but there are clear patterns worth understanding before you commit either way. Here's what's actually driving costs higher in 2026, and how to think through the rent versus buy decision with that reality in mind.
Why Equipment Costs Are Climbing in the First Place
Tariffs on imported steel and aluminum have expanded significantly heading into 2026, with rates on many products reaching as high as 50 percent. That matters enormously for heavy equipment, since steel and aluminum are core inputs in nearly every machine on a job site. Manufacturers have been absorbing part of that cost, but a growing share is getting passed straight through to the invoice price contractors see on new machines.
The numbers back this up. Industry economists have pointed out that raw material tariffs can add far more to a machine's retail price than the tariff amount alone might suggest, since the added cost compounds through manufacturing, distribution, and dealer markup before it ever reaches the buyer. Even major manufacturers with strong earnings have reported hundreds of millions of dollars in additional tariff-related manufacturing costs this year, and much of that pressure eventually shows up in sticker prices.
On top of tariffs, labor shortages in skilled trades and ongoing supply chain friction are extending lead times and pushing wage costs higher across the industry, which adds further upward pressure on both new equipment and the cost of getting parts and service done. None of this is expected to reverse quickly. Most forecasts point to sustained cost pressure through the rest of 2026 rather than a return to older pricing.
What This Means for the Used Equipment Market
Here's where it gets interesting for buyers. Used equipment pricing hasn't fully caught up to the inflated cost of replacing that equipment new, which has created a real window of opportunity for buyers willing to move now. A well-maintained used machine purchased today can often be acquired at a price still anchored to older market conditions, even though the cost to replace it with a comparable new unit has already climbed.
That gap won't last indefinitely. As more buyers recognize the value in today's used market and current inventory gets absorbed, sellers will naturally adjust pricing upward to close the distance with new equipment costs. If you've been sitting on the fence about a used machine purchase, waiting doesn't necessarily save you money the way it might have in past years.
Renting: A Way to Sidestep Rising Purchase Prices Entirely
For a lot of operations, renting is looking more attractive precisely because it removes you from the purchase price conversation altogether. Instead of absorbing a tariff-inflated sticker price on a machine you'll only use part of the year, renting lets you pay for access to the equipment only when you actually need it, without carrying depreciation, storage, insurance, or long-term maintenance costs on an asset that sits idle much of the year.
This matters especially for seasonal work. North Dakota's construction and agricultural seasons are compressed by weather, which means a lot of equipment sees heavy use for a few months and then sits parked the rest of the year. If a piece of equipment isn't going to be utilized consistently, renting avoids tying up capital in a machine that's only earning its keep part-time, and it sidesteps the current price inflation on new units almost entirely.
Renting also gives you flexibility to match the machine to the job. If rising costs have you reconsidering an upgrade to a larger excavator or skid steer, renting the exact machine a specific project calls for, rather than committing to a permanent purchase based on your biggest job of the year, can be the more capital-efficient choice while prices remain elevated.
Buying: Still the Right Call for Core, High-Utilization Equipment
Renting isn't the answer for everything, and rising prices don't change that. If a machine is central to your daily operations, something your crew relies on every single day across the season, ownership economics still tend to win out over the long run, even at today's higher price points. Rental costs add up quickly on equipment used constantly, and at a certain utilization threshold, owning becomes the more cost-effective path regardless of where purchase prices sit in a given year.
For equipment you'll run daily for years, buying also protects you from future price increases. If tariff and material cost pressure continues into 2027 and beyond, as many industry economists currently expect, a machine you own today is a machine you won't have to buy again at an even higher price down the road. That's a meaningful hedge for contractors and farmers planning multi-year fleet strategy rather than reacting quarter to quarter.
Financing also remains a real lever here. Current promotional rates and extended terms on new equipment can offset some of the sticker price increase, and it's worth asking about what's currently available before assuming a purchase is out of reach. The total cost of a financed purchase, spread over several years of heavy use, often looks very different from the upfront number that first catches your eye.
Run the Utilization Math Before You Decide
With prices moving the way they are in 2026, the old rule of thumb about utilization matters more than ever. Estimate how many hours or days per year you'll actually run a piece of equipment, then compare the total annual cost of renting that equipment against the annualized cost of owning it, factoring in financing, maintenance, insurance, storage, and expected resale value. Below a certain utilization threshold, renting usually wins, since you avoid carrying the full weight of an inflated purchase price on an underused asset. Above that threshold, ownership typically pencils out better, even with today's higher equipment costs.
It's also worth factoring in urgency and availability. Renting can put a machine on your job site immediately without waiting on new equipment lead times, which have stretched in some categories as manufacturers manage tariff-driven supply and production planning. If a project timeline can't absorb a delay, that immediate access can outweigh a pure cost comparison.
A Mixed Strategy Often Makes the Most Sense in 2026
Given how unevenly prices are moving across categories, and how differently tariffs are hitting new versus used inventory, many of our customers are landing on a blended approach this year rather than an all-or-nothing decision. They're buying used equipment where the pricing gap still favors buyers, renting for short-term or seasonal project needs, and reserving new purchases for the core machines that run daily and justify the higher current cost through years of consistent use. That kind of flexible strategy lets you take advantage of today's market conditions category by category, instead of applying one blanket decision across your entire fleet.
How Bison Machinery Can Help You Navigate This Market
We've watched equipment pricing shift plenty of times over more than fifty years as a family owned dealer in Jamestown and Casselton, and 2026 is a year where getting good, current information before you commit really matters. As an authorized Bobcat and Versatile dealer, we carry new equipment, thoroughly serviced used inventory, and a rental fleet, which means we can walk you through real numbers across all three options instead of steering you toward whichever one we happen to have on the lot.
Our team can help you run the actual utilization math for your operation, compare current financing offers against rental rates, and identify where today's used equipment pricing still represents genuine value before that window closes. Backed by a service department staffed with factory-trained technicians and a well-stocked parts inventory, whatever you decide, you'll have local support behind it.
