There are many benefits and challenges
for renting and buying heavy construction equipment. It depends on specific
needs of each and every project. So how do you decide when to buy equipment and
when to rental equipment?
Here’s an overview of some of the things
you should bear in mind before buying or renting heavy construction equipment
The Benefits of Renting
Renting construction equipment has
increased in popularity for a variety of reasons. In many instances, renting has
become a viable option for many companies, and provides them the ability to cut
costs and run a more financially stable construction business.
Purchasing new heavy equipment is
expensive and can make a huge impact on how your company’s budget. Renting equipment
avoids the upfront costs associated with purchasing, and allows businesses to
better allocate their financial resources.
In many cases, companies have to upkeep
and regular service of the machines, which is necessary for fault-free
operation. With rentals, the time and labor costs associated with maintenance
and repairs are lower and more manageable. Rather than worrying about
maintaining a piece of equipment for its entire life-cycle, leasing removes
this extra stress from your already busy schedule.
Also, Rental can save you from the worry
over logistics in transporting equipment from site to site, since you can
simply have the rental equipment delivered and picked up when needed. It can
help you respond faster to varied needs in different locations.
With owning equipment, companies must
have storage solutions in place to keep equipment when it is not in use. Equipment that is not stored properly or
exposed to harsh weather condition may depreciate faster. Additionally,
warehouse or storage space is an additional cost for construction companies. In
contrast, leasing has the ability to take these inconvenience away.
Renting also helps you navigate the ups
and downs of transitions more effectively. It gives you the flexibility to roll
with the punches.
Benefits of Buying
If you have a long-term project, then
you should consider buying your heavy equipment. The benefit of having your
equipment is that it comes as a one-time investment.
When you buy a new machine, you will get
the very latest in high-tech developments. Your company stays up to date with
the newest and most advanced technology by enabling you to increase and
maintain your productivity, capabilities and overall profitability.
New machines are far less likely to give
you operating troubles. Routine maintenance costs are part of being an
equipment owner, but your repair expenses will be a lot lower, if you buy new
heavy equipment.
The new equipment will have all the
advances in design and manufacturing techniques and the new model will
outperform older machines in most cases.
Buying construction equipment gives you
the flexibility of a higher return on investments and availability whenever you
need it.
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