Renting and buying aren’t the only ways to acquire equipment for your operation. For a flexible path to ownership, RDO Equipment Co. offers Rental Purchase Options (RPOs), also commonly referred to as Rental Purchase (RP) agreements. RPOs get equipment on the job quickly while allowing you to build equity along the way.
Whether you’re weighing your options or ready to rent, this guide breaks down how RPOs work, the value they offer and how RDO supports you at every step.
What Is an RPO?
A Rental Purchase Option is a rent-to-purchase agreement that allows you to rent a machine with the intention of owning it. Unlike a standard rental, an RPO applies a portion of your rental payments toward the final purchase price of the equipment. This allows you to build equity in the machine while keeping jobs on track.
Why Choose an RPO?
There are several reasons customers opt for an RPO over a traditional purchase or rental:
- Lower Upfront Costs: Ideal for customers who may not have the capital for a large down payment
- Build Equity on the Job: Rental payments contribute toward ownership, offering a flexible way to finance your machine
How the RPO Process Works at RDO
If you’ve rented with us at RDO previously, the RPO process starts in a similar way. Here’s a high-level overview:
1. Provide Necessary Documentation: To begin the RPO process at RDO, you need:
- A completed credit application
- Approved credit line with RDO or ensure the project is protected by filing a preliminary notice, which helps secure payment for all parties involved
2. Select Equipment: Our team works with you to find the right machine to meet your operational needs and align with your business goals, whether it’s new or used.
3. Set Up the RPO Agreement: Once you’ve selected equipment, we work closely with you to finalize the RPO terms, including the rental rate, interest and the rent-to-apply percentage.
We’ll share a schedule showing how much of your rental payments apply toward purchase at key milestones like three and six months. This ensures there are no surprises and that you know exactly what your financing will look like when it’s time to convert to ownership.
4. Rental Period: You’ll rent the machine for a set term — typically three to six months — while building equity through your rental payments. During this time, you’ll get the same support as you would with a standard rental, including machine monitoring, scheduled maintenance, warranty repairs and quick response to breakdowns.
Our team records all service activity and provides a complete record when the equipment is converted to ownership, so you know exactly what’s been done and when.
5. Purchase the Machine: At the end of the rental period, you can choose to purchase the machine. Your earned equity through rental payments is applied to the purchase, and the remaining balance is financed through John Deere Financial. Once the financing is finalized, ownership of the machine transfers to the customer, completing the transition from rental to purchase.
What Support Does RDO Provide?
Because the machine still belongs to RDO during your rental period, we treat it like any other rental — offering full support to keep your operation running smoothly:
- Remote machine monitoring to reduce downtime
- Scheduled maintenance and warranty repairs
- Quick response to breakdowns, including loaner equipment when available if your RPO machine needs repairs. Your payments continue applying toward the original machine
What If You Don’t Purchase the Equipment?
RPOs are designed to lead to ownership, but if you decide not to buy the machine at the end of the rental period, it’s returned as a standard rental. To learn more about the rental process at RDO, see our rental guide.
What Equipment Is Eligible for an RPO?
Any machine in RDO’s fleet, including both new and used equipment, is eligible for an RPO. Attachments can be included in an RPO if they’re bundled with a machine.
Whether you're looking to test a machine before buying or ease into ownership, an RPO is designed to give you flexibility and control over your equipment investment. At RDO, our team is here to help you find the right machine while supporting you on your path to ownership.
Ready to get started with a Rental Purchase Option? Contact your nearest RDO store to connect with a rental specialist, or call your regional rental dispatch team below. You can also explore our current rental inventory by region (not all equipment may be listed online):
Si Hanna
Si Hanna is the Vice President of Equipment at RDO Equipment Co., managing inventory levels and fleet valuation, along with supporting machine health and remarketing sales. Hanna began with RDO in 2005 in Compact Construction Equipment (CCE) sales. He has held roles including Store Manager in Hewitt, TX, and General Manager of Remarketing. His first job in equipment was with RDO, and 20 years later, he’s a trusted expert in a rapidly changing industry.
