Many companies decide to buy their heavy equipment rather than rent. However, there are many advantages to renting this kind of machinery. Before you make your decision, consider these five reasons why you should rent instead of buy.
Smaller Upfront Costs
Renting is more economical for several reasons, but one of the biggest is the savings of renting versus purchasing your own equipment outright. For example, 30- to 45-foot articulating boom lifts cost between $30,000 and $75,000 if you want to buy used or new. You can rent this equipment for less than $2,300 per month.
In addition, you won't have to worry about overhead costs, such as oil changes and the expense of storing the equipment for longer than you'll actually use it. You also won't have to worry about keeping someone on staff who's qualified to operate the machinery. Instead, you can contract out that work on a project-by-project basis.
No Maintenance Needs
If you own your machinery, you have to handle all repairs. Also, when the tires wear down on these machines, you'll have to purchase new ones and replace them — not an easy feat when you're dealing with a 2,500-pound skid steer loader. Other parts of the equipment will also wear down over time, and since heavy equipment is designed to undergo extensive use, you'll have to carefully monitor for wear and schedule routine maintenance to keep the machinery in good shape.
With a rental, this is all done off-site at no cost to you. You'll receive a machine in excellent condition, use it for your project, and return it without having to worry about ongoing upkeep. There's also virtually no chance of mechanical failure when you rent, which can't be guaranteed if you buy older equipment or purchase new and use your machinery extensively over the years.
No Insurance Needs
If you plan to purchase heavy equipment, you'll be required to take out an insurance policy that covers the equipment itself and the risk it poses to those who use or will be near the machinery. You can avoid this expense by renting — the rental company will be the one who has to keep the rental equipment insured.
Renting ensures that you receive high-quality machinery that has been scrutinized for any issues. This means there's far less risk compared to buying used. Even if you buy new, you'll have to handle inspections and maintenance on your own. This introduces extra costs and the possibility of mechanical failure in the future.
Owning your own equipment can be an investment, as it's an asset that you can liquidate at a future date. However, as soon as you buy equipment and begin using it, the machinery loses a good chunk of its value. With rentals, you don't have to worry about the fact that your equipment depreciates with every use.
Purchasing heavy equipment is a large investment that's only wise for certain businesses. If you're interested in this type of machinery for an upcoming project, you'll most likely benefit from a rental. Keep the above facts in mind as you continue to review your options threat synonym.