A great part of the success of the construction work depends on the quality of the tools involved in the process. The introduction of heavy-duty equipment has resulted in a massive productivity rate. Availability of top-quality heavy-duty equipment at the right instances has a lot to do with the success rate of a construction company or contractor.
Before you move on to acquiring the equipment by renting or buying, there are a number of factors that need to be considered.
The first thing to look for is whether the equipment is to be used frequently or not. The current work and future work should be taken into account in this case. Whether buying or renting, this factor would likely make the decision.
The additional cost associated with the equipment plays a very important role in deciding between renting or buying the equipment. Resale value and working capital should also be considered while making the decision.
These factors can often fluctuate depending on the business situation. If these factors make you rely more on renting, rental sites like Arnold’s Equipment Rental can definitely help you as they provide the best quality equipment ranging from compact equipment to earth-moving equipment along with the best rental services for heavy-duty equipment.
Now comes the major question – rent or buy construction equipment? Here are some points that can help you in deciding between the two.
Buying Construction Equipment
The interesting part about buying construction equipment is that you get to have complete control over when and how they can be used. Owning the equipment means that the operators are a lot more familiar with the machines and can lead to exceptional performance and results.
Once you buy equipment, experts in that field will be hired. These experienced workers and familiar equipment can decrease the chance of accidents. This,in turn, guarantees the safety of the equipment and the workers as the service and upgrading plan that comes along with buying heavy-duty machines makes sure that your projects get completed in record time.
An advantage that clearly stands out while buying equipment is that you get the freedom of choice. Renting or leasing does not fully give you the opportunity to choose specific models or equipment from particular companies. This is a given in purchasing your own machines. You get to decide the brand and model without having to adjust with whatever you receive from the rental companies.
Owning a machine comes with a lot of expenses including transportation charges, maintenance fee and additional charges like tax and insurance. Make sure to be thorough with your equipment’s maintenance fees but even then, sudden repair or replacement costs can affect your company’s financial status.
Buying equipment can be less flexible. You will try to make the most of the equipment over time, but the risk of working with old equipment will be constant. The occasion would demand newer, upgraded machines that would benefit the latest projects. In such cases, you would have to spend even more money on acquiring new items.
No Depreciation Cost
Once the need to sell a piece of equipment to replace with a newer one arises, there would be no depreciation cost that would support the sale. The value of the machine decreases over time and so does the cost. Therefore, selling your equipment and buying a new one will undoubtedly cost you a lot.
Renting Construction Equipment
Access to the Latest Equipment
With the latest and upgraded machines in your company, the success rate will be higher than ever. By renting, you will be able to acquire the latest and most efficient pieces of equipment without spending much money. Renting allows you to choose the required machines at the required time and not spend extra money on buying a new one.
The main advantage of renting equipment is not having to spend a large sum of money all at once. Payment can be done in small amounts regularly. This ensures steadiness in your company’s finance. Moreover, renting allows you to hire a machine for any period of time depending on the project.
Having construction equipment without the maintenance fees that accompany it, is something that most construction companies wish for. Most of the companies that provide equipment for rent take care of its maintenance. That means, even if something happens to the equipment on your part, the maintenance service will be ensured by that company.
The biggest disadvantage of renting construction equipment is the availability. The equipment you require may not be available at all times. While on a construction project, the need for particular equipment may be urgent and it may clash with the availability of the equipment from the rental company. Availability is not guaranteed when relying on renting.
Renting cost depends entirely on the period of time you choose to rent the equipment. However, there may be additional costs charged at the end of service. Sometimes, these additional charges can be in the form of pick-up and drop-off charges that not many people are aware of. Make sure to check for these charges thoroughly before renting.
Renting requires payment according to the period of time you choose. However, this can also be a disadvantage. If the renting period exceeds a certain time limit, the rent goes up higher than you can imagine. In such cases where you have to use it for a long time, buying the equipment would be the better option.
In any case, choosing the right method while keeping in mind factors like cost, use of the equipment and the time period required can be hard. Make sure to choose a method that is beneficial for your company.