Should You Rent or Buy Construction Equipment
About construction and excavation equipment. The first thing to consider when buying construction equipment is how long it will last. Secondly, how much work can you achieve versus the price paid. We have compiled information about the best brands and types of equipment.
Always read independent reviews so that you are informed when making a desicion to buy any equipment.
Should You Rent or Buy Construction Equipment?
Excavation and construction companies often run into the problem of not having enough equipment on a job site. Planners underestimate the job or try to hard to keep the original budget and bids low which has the result of being short on equipment when needed.
They have two options to remedy the situation. You may rent machines and equipment or outright purchase the needed equipment. Of course, it is not simple to make this type of decision, and therefore, there are several factors that should be considered before the decision is finalized.
How Pricey are Rentals?
Most rental companies do not hide the fact that they do make a lot of money from companies that need to rent equipment. Face it, they know you are probably in a bind and are willing to pay the cost they offer. The rental companies generally rent the equipment on a daily basis or weekly basis, which does not usually work out to benefit the customer. Depending on the area you will be working, the price can range from pretty steep to nice and affordable.
Then the price will also vary due to the type of equipment you need to rent. Generally, machinery like excavators and off-road dump trucks are probably the highest priced for renting, and can have a rental price tag of as much as $12,000 per month. This may seem pretty steep, but if your company is a profitable one that has lots of big and good paying projects lined up, the price does not become an issue.
What Can You Expect When Buying?
If you are faced with needing more equipment, but you are not interested in renting, you can always make an investment and purchase the equipment. You will want to opt for buying the equipment if you have plans to use the machinery more often, not just for one project. Also, if you work on huge projects frequently, you will definitely want to consider making that needed piece of equipment part of your work force by making the purchase and not renting.
Often, buying the equipment will bring you financial savings in the long run, as you will have the equipment you need and allow you to take on more projects. Again, if you only require the machinery for one or two jobs, you should think about renting it; otherwise, you should consider purchasing it. So, just make sure that you will be getting good use out of your purchase.
Servicing the Equipment
A benefit of renting the equipment you might need is that the rental company is responsible and in charge of fixing and maintaining the machinery. Since you do not own the machinery, your company will not be responsible for the repairs. If and when something goes wrong, you will simply have to call the rental company and have them come out to the site and fix the issue because part of the rental price includes maintenance and servicing agreement, which is further noted in the rental contract.
Once you have decided to purchase the equipment, you and your company are responsible for any maintenance and repair the machinery will need. You are probably already aware of the fact that owned equipment will need to have routine maintenance and check ups in order to keep them working efficiently.
In the end, choosing to rent the equipment or buy the equipment will come down to your needs. You, of course, will have to consider your finances, and the affordability of renting versus buying. If you do not have enough capital to make a purchase, considering rentals is probably a more sound decision for you. Either way, you and your company will be able to get the equipment you need in order to finish or take on a job, and allow you to stay on task.
