When you need construction equipment, you have to decide whether to buy one or rent one. So how do you decide when to buy construction equipment and when to rent what you need? Well, here’s a guide that will help you in deciding if buying or renting construction equipment is good for you:
Current Financial Situation
This is the most obvious factor to consider. Based on your current financial situation, you will know if you can afford to buy construction equipment or is renting a better option for now. However, you should not only think about the present. Although buying construction equipment may be a one-time financial outlay, the cost of renting can add up quickly and over a long period and can cost you even more. Also, when you own construction equipment, you can see a return on your investment when you sell.
Cost of Renting vs Cost of Ownership
It is important for you to estimate the cost of renting equipment vs the cost of equipment ownership. When you own construction equipment, there will be maintenance and operating costs, insurance and other fees such as government licensing, and all these costs differ from machine to machine. Renting equipment is an inclusive cost, but as the rental company has to turn a profit, you should consider that your rental amount will include the purchase price and the cost of ownership as well. Additionally, you will have to pay to transport the construction equipment to and from the rental store, every time you rent it.
Length of Project or Job Frequency
Of all the things, the frequency of jobs or the project length should be the deciding factor whether you should buy construction equipment or rent it. If it is a short-term job, renting would be a better option. However, if you have similar short-term jobs to do regularly, you may want to buy the construction equipment because paying rent every single time will eventually cost more than the buying cost. Also, if the construction equipment you are looking at can be used for various purposes, it will be a great asset for any job site.
These are the main things to consider when you are thinking of buying or renting construction equipment. However, it is best to take the advice of trusted heavy duty dealers. Once they know your situation and your job requirements, they will be able to give you the right suggestions.