Posted on May 6, 2020 at 8:00 AM by Crystal Harrison
Renting Heavy Equipment vs Buying: Which is Right for Your Business
Deciding whether to rent or buy heavy equipment for your next construction is a decision that can make a big difference on your bottom line. There are pros and cons when it comes to deciding if you should buy or rent heavy equipment, so there are a few things to think about before deciding which is right for your business.
The first thing to consider is the scope of your business, and whether the piece of equipment you’re looking at is going to be used frequently or simply a couple of times. If you just need something for a specific project and it may not have a lot of use beyond that, renting could be the economical decision for you. If it is a piece of equipment, you will use over and over again in your business, it could be time to take a look at construction equipment for sale.
Next, it’s important to think about your current financial situation, including considering all of the factors of owning construction equipment. There is a higher upfront cost when buying compared to renting, and it also comes along with ongoing costs such as maintenance, insurance, and storage, which may be covered by another party when renting. Buying can certainly be a great decision in many situations as it can be cheaper over the long term; you simply need to honestly assess the costs that come along with it, similar to purchasing a house.
Another aspect to consider for your business is the availability of the equipment, and how flexible you need to be with it. When you own the heavy equipment, you can be more flexible in using it when you need it, as it is always available to you. When renting, you may not have the luxury of having the right piece of equipment available if you need it within a short timeframe.
When it comes to renting, some of the advantages are the lower initial investment you’ll face, the access you potentially have to a wide range of equipment to find what suits the needs for your job, and the fact that all of the incidental costs that come along with owning heavy equipment is handled by another party. Some of the advantages of buying are that it is often cheaper over the long term, you can potentially get a return on your investment by selling it when you are finished using it, and you have more flexibility to use the equipment when needed.
In the end, there is no right or wrong answer, as it simply depends on your situation and needs. If you have any questions or are looking to buy, contact us at Ranko Equipment today.