The construction business is not an easy one, and it certainly is not easy on your wallet. More than anything else, the price of construction equipment can put an oppressive load on you. This surely leads to moments when you need to ask yourself some questions, the most important being whether you should rent or buy. In this article, we will help clear your doubts.
What will be more beneficial, buying or renting?
This is surely the most pressing question you have to deal with from time to time. No matter whether your business is small or big, you will always need some equipment that are either too costly, not always needed, or both. These are the times when you need to decide whether you should buy the machine or simply rent it. Consider a few facts before making that decision to ensure that you make the more profitable one.
How often do you need that machine?
The amount of use of particular equipment is one of the most important factors to consider. There are some machines that you need regularly on a construction job and then there are some that you need only when a particular project demands it. So, if you are considering adding equipment to your collection that you have to use on a regular basis, then buying them will be the smarter choice. Otherwise, for the equipment that isn’t required that frequently, you can always rent when you need to.
Cost of rent vs. cost of purchase
When deciding whether you should buy or rent construction equipment, it is of utmost importance that you consider all the aspects of your expenses. Let us start with a scenario where you buy equipment. First of all, when you are buying something, you have to pay a sizeable amount. Even if you buy in installments, the interest on the payments will not do you any good. Besides, you have to worry about the maintenance cost, repairing cost, and insurance cost. However, on the other hand, when you are renting equipment, you need to pay less, and you can worry less about the extra expenses. In the end, you will just have to determine which option will be more profitable in the long run.
Additional expenses after purchase
As already mentioned, buying the equipment will come with additional expenses. Let us have a closer look into them now. Maintenance costs are always high when it comes to heavy machinery. Construction equipment, especially, is used in the most challenging of conditions, such as all types of weather. Apart from dust and heavy usage, some of these machines are prone to more accidents. So, the chances are that they will need regular maintenance, which isn’t cheap. Add to that the transportation, insurance, and repairing needs, and the cost goes up significantly.
Location of the job
This one is fairly simple. It is expected that you may want to spread your business all over the country. However, it gets really tough and costly to move your equipment to a faraway location from your home-base. Renting is the smarter choice when the job is in a different city.