Is it time you need some pieces of heavy equipment or trucks? Maybe, you have achieved a huge contract coming down the pipe or you are thinking of expanding your construction business, then how would you decide whether and when to buy or rent the heavy equipment. Both leasing and purchasing have their own pros and cons. It pays to calculate the company’s present efficiencies and situations as well as the planning for the future and conscious consideration of the right equipment needed for your business- and hence making your life smooth. Undoubtedly, initial price is the key factor in taking the decision. Apart from it, there are some other things to look at when the right time has come to gear-up – availability, usage and the like.
As you read the article, you will get to know the important things to consider while deciding when to buy or rent the equipment.
- Present financial condition: – This is one of the most obvious things to take into consideration. Ask yourself- “Do I have the money to purchase or should I go for renting the equipment now?” You should try to look ahead to estimate your costs keeping in mind your present financial condition. If you are going through financial crisis period, it’s always better to take the required equipment on rent, as it will help you to save your money on a long term-basis.
- Compare the renting and purchasing cost: – It is also essential to compare the equipment ownership cost with the renting cost. The renting of the machine doesn’t need any kind of maintenance charge because if any damage happens in any part of the rented machine, you just need to contact them and tell them your problem in details. They will immediately send a technician to help you out. But, this is not the case when you switch to purchase the equipment. With the ownership of the construction machine, come operating and maintenance costs, fees like the license from the government and insurance. While renting, you should find out that the renting fees should include both the ownership as well as the buying price.
- Time duration of the constructional project: -Of all the above mentioned things, time duration of the project and the frequency of employment on the calendar can become a deciding factor in whether you purchase or lease the equipment. If your short-term job calls for a specialised equipment, then the best option is to switch on to the renting companies to get your special machine on rent.
- Availability of the equipment and its applications: -The increase in the competition of the industries of renting companies enables you to get the different kinds of products of latest brands whenever you approach them. Moreover, they will also make you aware of the equipment’s applications clearly and easily. A genuine renting company will always offer you new machines by giving the maintenance and insurance assurance which will be handled by third party.
The equipment rental is the logical option for many contractors and owners of heavy construction businesses to save money and to spend it in some other needed sections.