Renting heavy equipment rather than buying it outright might seem like a no-brainer, especially if you’re on a tight budget and you want to grow your business and take on bigger projects without the upfront costs.
But before you go ahead, you need to think about a few factors that will sway your decision-making in one direction or the other, so here are the key considerations you should consider.
Workload matters
For sporadic, short-term use, it’s clearly better to rent equipment, like for instance, cranes which you can rent from crane hire and rigging services. On the other hand, if you’ve got a long-term project on the horizon, or you’ve got a series of jobs in the diary which will all require the same gear, then buying might be savvier.
Versatility is relevant
Another point to remember is that some heavy equipment can serve more than one purpose on a worksite, so might be more useful than is initially obvious.
This will not only determine whether you rent or buy, but should also play a part in pinpointing the right equipment to invest in from the top manufacturers.
Budget is key
Part of managing your business finances is making sure you not only know how much you have to spend on equipment today, but what value this will add in the long term.
You have to balance the cost of renting against the price you’ll pay to buy heavy equipment outright. You should also take into account the residual value of anything you purchase in full, as you can sell this later to recoup some of your initial investment.
Second hand units make things interesting
A major turning point for recommending buying heavy equipment over renting it is that you can pick up used examples at a discount compared with new models.
For example, you can get an economical forklift on the second hand market and thus make it easier to justify the upfront expense if cash flow is restricted.
In-house resources matter
Owning equipment comes with caveats aside from cost, such as needing to manage your small but growing fleet and to carry out maintenance and repairs over time.
Renting will be cumulatively more expensive, but will offload these responsibilities elsewhere, giving your team time to get on with other tasks.
Finance deals can be favorable
You can spread the cost of buying heavy equipment over a protracted period with the help of financing, whether from the manufacturer or through a business loan.
In this way, you’ll have a similar experience to renting, but at the end you’ll have a resource that you own outright, and can resell, as mentioned earlier.
Always check to see whether current interest rates are in your favor as a borrower before you look into financing, and ensure you’re getting a competitive package.
The need to transport equipment might sway you
If all of your projects are in the same geographic area, then the cost and complexity of hauling your heavy equipment to the jobsite will be minimal.
On the other hand, if you know that you’ll need to travel long distances with the gear in tow, there will be costs associated with this. Renting from a regional supplier in the areas you’re visiting could tip the balance.
Variety might seal the deal
Last but not least, with new and used equipment available to buy, you can have your pick of every conceivable make and model of construction machinery. If you’re renting, you are limited to whatever units that a given supplier has available at that time.
Take time to calculate carefully and consider all eventualities when procuring heavy equipment to make the best decision for your business. In addition to renting heavy construction equipment, you should also consider renting Construction restroom trailers for your construction workers.