In construction, having the proper machinery available at the perfect time can make a difference. You will need to decide whether or not you want your equipment rented or purchased, whether you are running a large firm or a smaller contracting company. Although each option has its advantages, your choice will often depend on your business model, project scope, and financial strategy.
Heavy construction equipment rental has become more popular as businesses seek to be more flexible in managing their resources. But is renting always the best option? Let’s compare renting and buying construction machines to help you choose the best option for your business.
Construction Equipment – Why You Should Buy It
1. Long-Term Value
When you plan to use equipment consistently over the long term, it makes sense to buy the equipment. Buying a machine that is regularly used across multiple projects can prove to be more cost-efficient over time. It becomes yours if you finance or pay up front for the equipment. It increases the value of the company and offers tax depreciation advantages.
2. Full Control and Customization
You have complete control over your machinery, including the maintenance schedules and modifications. You can customize the equipment to your exact project needs without restrictions. Renting equipment without restrictions or deadlines is a great way to save money.
3. Availability at your fingertips
When you own equipment, it’s always available. You are not dependent on a rental company’s inventory. This is an important advantage, especially during busy seasons or emergencies when equipment availability may be limited.
But buying has its drawbacks. This is especially true for smaller businesses that have fluctuating workloads.
Heavy Construction Equipment: Rent It And Enjoy The Benefits
1. Lower upfront costs
One of the main advantages of renting heavy construction equipment is the ability to get top-notch equipment without having to make a significant financial commitment. By renting, you may invest in other aspects of your company, like staff, supplies, or advertising.
2. Flexibility for Short-Term or Specialized Projects
Renting allows flexibility in short-term projects and niches requiring specialized equipment for a specific period. Instead of investing tens, hundreds, or thousands of dollars in equipment you may not use often, you could simply rent it when you want.
3. Reduced Responsibility for Maintenance and Storage
In most cases, the rental company is responsible for maintenance and repairs when you rent. This will not only help you save time and money but will also reduce your stress. Furthermore, you will not have to worry long-term about storage, particularly for large equipment requiring space and safety.
4. Access to the Latest Technology
Rental companies have access to the latest technology. They regularly upgrade their fleets. Renting allows companies to access the most up-to-date machinery without constantly investing in upgrades and worrying about equipment obsolescence.
5. Predictable Budgeting
Renting makes budgeting easier with clear daily, weekly, and monthly rates. You can accurately estimate the costs to avoid unexpected expenses arising from equipment breakdowns and depreciation.
When To Rent Or Buy? When Should You Buy?
Renting or purchasing equipment often depends on how much you use it. There is a “60% rule”, where you purchase a piece if it is used more than 60-70% of the time. Renting something less frequently used is usually cheaper.
Buy if:
- The equipment used is daily or even weekly for multiple projects.
- You have projects with long-term needs.
- Owning a car is a good investment if you have the funds and the storage space.
Rent if:
- If you only plan to use the equipment temporarily or as a one-off, it is unnecessary.
- You wish to avoid major capital expenditures.
- You’d rather access the latest equipment.
- You’ll need several types of specialized equipment for your project.
Final Thoughts
There is no universal answer for renting or purchasing construction equipment. Each project and business is unique, and the best decision usually involves combining both strategies. For many companies, renting heavy construction tools and equipment when needed and owning the core equipment offers the best cost control, efficiency, and flexibility.
Before you decide, evaluate your project timelines and equipment usage patterns. You should also consider your financial situation and plans. Knowing what you are doing will help you make the right decision.