When it comes to heavy equipment, many businesses or construction sites are pressed with the decision to rent or purchase the equipment. This can make for a good or bad investment depending on how often you will use it and how well you can maintain and store it as some may require special storage. There are pros and cons to renting heavy equipment and we are going to look at a few of them today to help you make the right decision.
Heavy equipment can be anything from backhoes to large cranes and everything in between. This type of equipment usually falls under the category of non-essentials when building a business’s supply of regularly used equipment but sometimes certain jobs may require the use of them. This is where you will want to weigh the thought of renting your equipment.
Pros
You Can Choose From The Newest And Best Equipment
One of the best things about renting your heavy equipment from a heavy equipment rental company is that they usually keep a large supply of the latest and greatest machines to stay competitive. This allows you to pick and choose the best equipment that allows you to get your job done as quickly and easily as possible. When purchasing equipment, you will most likely have it for years which will lead to outdated technology and more downtime when repairing older equipment. This is also a great way to try out some new equipment before you may an actual purchase as well. Think of it as a test drive for the equipment that you have in mind without the commitment to buying.
Less Cost Up Front
One of the biggest reasons that people choose to rent over purchasing new heavy equipment is going to be the upfront cost. Heavy equipment can vary in cost and depending on the budget of your project, it may be well out of your realm to purchase a new piece of equipment. While you can get great deals on purchasing heavy equipment on sites such as EquifyAuctions.com, if you are only planning on using it once or twice, renting is going to be the best bet for you. Renting allows you to use the equipment anywhere from a day to months on end to allow you to pay a flat rate that is much cheaper than having to purchase and maintain a new piece of heavy equipment.
Most Rental Companies Cover Maintenance
When purchasing heavy equipment of a sort, you will be required to keep up with the maintenance that comes along with it. This can really tack on a large amount of money to your initial investment to keep your machines running, especially if you are using them in a harsh environment or in ways that may prematurely wear some components. This is where renting your equipment can become much more cost-effective as most rental companies cover any maintenance repairs that need to be made to the equipment that you have rented. It is a good idea to review their policy on damage and maintenance to ensure that you will not be footing the bill for a broken or worn out part on the machine that you have rented. Rental equipment gets used very harshly so making sure you are protected from other companies rental mistakes is going to be vital.
Cons
Time Vs Money
While renting, equipment may seem like the obvious choice as it is going to save you money from the get-go, you will also want to look at how long you will be renting the equipment and what the cost will be. Companies can easily rack up a large bill by not paying attention to how long they have had the equipment. So much so that they may be halfway to the price of purchasing the equipment. This also applies to those who will be renting for short periods of time, many times a year. The time and money involved in renting, picking up, and dropping off the equipment may prove to hide some lost money that could have been saved by owning and reselling your equipment later down the line. Make sure to look at all of the equipment that you are renting throughout the year and weight that against purchasing the equipment outright.
You Are Not Investing In The Equipment
Similar to the above, when you are renting your equipment, you are not investing your money in something that can give you a return. Renting equipment is basically throwing money away for you to just return the equipment. Buckling down and making the initial purchase can allow you to rent the equipment out on your own to recoup some of your money or simply reselling it later down the line to get some of your money back. By doing the math on how much you will spend on renting throughout the year, you may see that purchasing the equipment outright is going to be a better deal for you in the end. You can even rotate out equipment yearly to stay on top of the latest and greatest equipment.
You May Not Get The Exact Model You Want
One of the biggest drawbacks of renting heavy equipment is that you can never rely on the availability of the equipment that you need. Especially during a time where the equipment is in large demand such as after a heavy storm or in towns where there is a lot of construction. This can set you back days or weeks behind schedule until you can find another piece of equipment available to rent. By purchasing your equipment, you will no longer be at the mercy of rental company’s stock levels and can even make a few bucks renting out your equipment when there is a shortage. This is something that many people do not think about until they are hit with the reality of the situation and are forced to purchase the particular heavy equipment on the spot.
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