Whether you are looking to replace equipment for your contracting business, or you need equipment for a new business venture, it can be difficult to know whether you should purchase or rent construction equipment. While this is not an easy decision to make — and which option is best for you will ultimately depend on the unique needs of your company — there are several benefits that renting heavy equipment can provide over purchasing. Here are just a few of the reasons you should consider construction equipment rental for your business.
Renting Provides Flexibility
Perhaps one of the greatest benefits of renting construction equipment is the flexibility this can bring to your business. The fact is that purchasing construction equipment is a major investment; it only makes sense if you’ll be doing the same jobs requiring the same equipment for many years. This means when you purchase construction equipment, you are limiting yourself on the jobs you can bid for and accept. By renting equipment you’ll have the flexibility to open yourself up to a wider range of projects; as you can rent equipment specifically for each job you do.
Upfront Costs
As we previously mentioned, purchasing construction equipment is a major investment that requires a large amount of capital upfront. However, for smaller businesses such purchases can greatly restrict their cash flow, making it difficult to pay for other expenses. Yet, considering the necessity of this equipment it’s usually not an option to wait until you have a deposit saved. Renting then provides the perfect opportunity for these smaller businesses; it provides access to the equipment needed without the upfront costs of purchasing construction equipment.
Depreciation
Businesses must also consider depreciation when trying to decide whether to rent or purchase construction equipment. The fact is that construction equipment depreciates extremely fast due to the wear and tear it undergoes during regular use. Thus, should you try to resell this equipment after even just a couple of years you’ll likely find it’s only worth a fraction of what you paid for it. This is another reason why it’s important to consider how long you’ll use a piece before deciding to buy. If you think you will want to upgrade your equipment after a couple of years, then renting will likely be the better option for your business due to the costs of depreciation.
Save on Additional Expenses
When comparing the costs of renting to the costs of buying construction equipment, one must also consider the additional expenses that come with owning heavy equipment. It is easy to underestimate how expensive it can be just to maintain this equipment; however, you’ll also want to insure it to make sure your company is protected in case it’s stolen or damaged. Additionally, depending on the size of your company’s facilities, you may also have to pay to store your equipment somewhere when you are not using it. These expenses combined can make it extremely costly to own construction equipment. However, when you rent equipment these expenses are handled by the rental company; they are spread out amongst the renters via rental fees. This makes renting the easier and less stressful option for many contractors.
Exchange it at Any Time
Considering that purchasing construction equipment is a major expense, it can also be a major risk. You may purchase equipment only to realize that it wasn’t quite what you needed. However, when you rent it is easy to exchange your rental equipment for another size or model, or a different piece of equipment entirely, reducing the risk if you are uncertain which piece of equipment will best suit your needs. In fact, even if you would like to own your construction equipment, rental can be a great way to test before you buy in order to ensure that the equipment you are considering is the best option.
Renting construction equipment is the more flexible and affordable alternative to buying for many contracting companies. Contact us to learn more about construction equipment rental and the benefits it provides.