Should you rent or purchase the equipment and machines that you need for your construction projects? While buying your very own equipment may seem great at the first glance, the reality is that renting is often a smarter idea. Here are some scenarios and reasons to rent equipment which will give you a better bang for your buck.
Reasons to Rent: Short-Term or One-Time Projects
If you often need to work on short-term or one-time projects, renting your machines will allow you to have all the project-specific equipment that you need. If you purchase all your equipment, on the other hand, you will always be limited to what you have; you won’t be able to afford to constantly purchase new equipment that you may not need again.
Exact Size and Power
Similarly, you’ll always have the exact size and power that is needed for each project. Some projects will require the same types of machines, but for some, you may need larger and more powerful machines. By renting your equipment, you’ll be able to get machines of the exact size and power that you need for each project.
Similarly, there are times when you will need two of the same machines, such as during certain seasons or when you otherwise need to increase productivity. This flexibility is one of many reasons to rent your equipment.
Test New Equipment and Technologies
There are times where you will want to experiment with using different machines or equipment that uses new technologies. The only way to test-drive these machines or technologies without committing to them is by renting them from a rental agency.
Top of the Line Equipment
Buying your own equipment comes with some downsides. For example, the equipment will depreciate over time. Maintaining your equipment will cost you money, and most contractors can not afford to purchase new equipment on a regular basis. If you rent your equipment from a high-quality rental agency, on the other hand, you can be assured that you will get high-quality and well-maintained equipment for every project.
This is especially important if you are a small company and are trying to compete with larger contractors who have bigger budgets and can afford to purchase the newest machines. By renting your equipment, you can have the same work power as them and maintain your competitive edge.
Only Use Equipment You Need
Not buying equipment gives you the flexibility of only using equipment that you actually need. If you purchase equipment, you’ll sometimes have equipment lying around that you aren’t using. Cutting costs and saving money are great reasons to rent instead of buy equipment!
Compliance
If you own your equipment, you are responsible for compliance yourself. Each state has different safety regulations, as well as regulations aimed at conserving the environment. This is another hassle that will cost you effort and money.
Renting your equipment from a trusted agency, on the other hand, takes this worry off your mind.
Tax Benefits
You may be able to get some extra tax benefits if you rent your equipment. For example, you may be able to deduct rental expenses on your business tax return; capital expenses such as purchases may be treated differently.
Other Reasons to Rent
There are other benefits as well. For example, if you are stuck with old machines, you may find it more difficult to get loans from banks. This is because your assets have depreciated. When you strictly rent your expenses, on the other hand, this may not apply. Other benefits include saving money on maintaining, transporting, and storing your equipment. You also have to consider things such as the depreciation of your assets if you purchase equipment.
For help with finding high-quality on-demand equipment for your construction business, contact us today.