To buy or not to buy is the big question that runs through the business minds of many companies. When deciding whether to rent or purchase construction equipment it is extremelyimportant to weigh the pros and cons for each. By sitting down and asking yourself a few questions about your business and equipment needs you can determine which option is right for you.
How often will the equipment be used?
Purchasing equipment upfront always costs a considerable amount of money, however if it is used on a daily basis then the long term cost could be far less than hiring. However you also have to consider the maintenance cost to own it, unlike renting you will be responsible for registration and repair costs. Chances are, for big ticket items you will also need to get a business loan, so make sure you account for the loan account fees and interest charges. Sit down and work out your daily costs for both scenarios, then choose the one that is more economical. A general rule to apply is that if you are going to use the machinery less than 60% of the time then it is probably more economical to rent the equipment rather than purchase your own.
Do you have multiple projects on different sites?
Transporting equipment from one location to another can quickly add up to become quite costly and cut into valuable time, especially if the transport is not readily available. The great thing about rental companies is that they have the means and equipment to easily transport the equipment to your project site; this can save you both time and money. The main thing to remember is that you want to work smarter not harder, and by allowing a rental company to take care of the transportation will free up one of the most important resources – time.
Does the equipment require a highly skilled operator?
A complex piece of machinery needs an operator who has been professionally trained, and these staff come at a cost. Yes you could enrol one of your staff members to get ticketed for the piece of machinery, however this generally takes anywhere from 20 – 50 hours. Rental companies can organise the skilled labour for you, giving you the time to focus on what’s truly important – the overall project.
Do you have the resources to fix your own equipment?
Like cars, machinery needs repair and regular services. Do you have the time, money or resources to do this?Rental companies have the tools and resources to maintain the equipment correctly, so not only are you getting high quality equipment – you don’t have the hassle of worrying about regular maintenance. Renting is definitely a more viable option if your company does not have many of the resources needed to fix and maintain the equipment.