Should You Rent Or Buy Your Heavy Construction Equipment?
Posted on: 5 June 2017
When your company starts to grow, you will need to add more equipment as well as employees in order to expand. The growing trend in heavy construction equipment has become to rent the equipment a company needs instead of purchasing it, especially if it's for a one-off job. Should you rent or buy your construction equipment? Well, there are a few things to consider in order to make your decision.
Company's Budget
The first thing to consider when deciding whether you should rent or buy your construction equipment is what your company's budget is and current finances. Does your company have enough capital to buy more trucks or loaders or even air compressors? If you have limited funds, it might be a good idea to rent what you need for now. If you feel you will use the items you are renting often, then you could consider buying quality used equipment as it will be more cost-effective in the long run.
The Cost of Maintenance
If you decide to buy what you need, then you must also think about how much it will cost to maintain it. You will have to figure out how much it will cost to operate each piece you buy and what insurance you will need to place on each item. It might be a good idea to consider renting if you are a new business and haven't yet reached profitability. Over the long run once your company makes more money and you can afford to buy your own items, then it may be the right time to make the purchase.
How Often Will You Use It?
If you only need an air compressor for one job and might not need it again, then it is probably a better idea to rent it instead of buying it. If you might use one for every job you do, then it makes more sense to buy it. The decision between renting and buying should also depend on how often will you use each item you are considering buying and if it will be a major piece of your company or not. It makes no sense to buy equipment you won't use that often when your money could be better spent elsewhere.
A great advantage of buying your construction equipment is the fact that you will always have access to it. What happens if you don't own an item and there is a job that requires it? You will have to contact a rental agency and hope that they have one available. This will never be a problem if you buy your pieces.
Talk with a local company like Wirtz Rentals CO for more information.
Share