Renting vs. buying construction equipment is a hard decision to make. This is because there is no "right answer". The correct choice is different for every business.
Construction equipment refers to heavy equipment. This includes backhoes, bulldozers, excavators, forklifts, skid steers, and wheel loaders. These types of equipment are generally used for large construction tasks.
Heavy Machinery Hub has the resources you need to make the right choice. We'll cover the pros and cons of buying and renting heavy equipment. Then, we'll help you find top-notch equipment in your area.
Let's start by comparing renting vs. buying construction equipment.
Buying
As a general rule of thumb: if you plan to operate your equipment for more than a month consecutively, buying is the best option.
Pros:
- Buying construction equipment is cheaper than renting in the long run. If you're working on long-term projects, buying construction equipment has a higher return on investment. The upfront cost is pricier, but it's a one-time fee while renting charges are ongoing.
- There's an opportunity for you to make money! If you're no longer using your equipment, you can sell it for a profit. Currently not using your equipment, but plan to? You can rent your machines out. (If you opt to rent your equipment out, just make sure you have the right insurance in place before doing so.)
- Buying construction equipment eliminates the middleman. The absence of a rental agreement allows you to take your time with the equipment. It also eliminates company restrictions and limitations. What you own, you control.
- Buying construction equipment allows you to set your own maintenance plan. This means you can do more, or less, than the recommended maintenance for your heavy equipment.
- Buying construction equipment gives you unlimited access to your machines. This gives you the freedom to jump on new projects or react to unexpected schedule changes. Businesses that depend on the same machine for different projects will also benefit.
Cons:
- Buying construction equipment requires storage. Leaving equipment outside will cause damage from elements and weather conditions. Professional storage facilities are expensive. If you plan to purchase equipment, think about where you will store it long-term.
- Many additional costs come with equipment ownership. Beyond insurance and maintenance, you're liable for each job's transportation costs. This includes loading, unloading, and driving. Make sure your budget can accommodate these costs before buying construction equipment.
- To turn a profit, you need to factor equipment cost into your business model. Let's say an independent contractor makes an expensive purchase. That will directly lower their ability to offer clients competitive pricing.
Renting
As a general rule of thumb: opt for heavy equipment rental if you use your machines less than 60% of the time.
Pros:
- Rentals have a lower initial investment. Renting heavy equipment allows you to compare different machine types. You also get an idea of operating and maintenance costs, and if they fit your budget, before purchasing.
- Some projects aren't long enough to recover the cost of buying construction equipment. That's why renting heavy equipment is great for short projects. It's also good for specialized machines you'll only need short-term.
- Heavy equipment rental gives you access to equipment you don't have the funds to purchase. It's also great for additional pieces outside of your regular budget.
- Buying construction equipment comes with a lot of ongoing costs. With heavy equipment rental, once you're done with the equipment, you're done! Renting heavy equipment also eliminates incidental costs from your budget. This includes maintenance, storage, and insurance fees.
- When renting heavy equipment, the best model on the market is yours. This means you always have access to the newest, most up-to-date technology! You can test-drive new business opportunities and equipment without having to commit.
Cons:
- Depending on rental frequency, heavy equipment rental can be the most expensive option. If you're renting heavy equipment often, costs can quickly add up.
- With heavy equipment rental, you pay for rental time. You can acquire a lot of unnecessary costs if you aren't using the equipment for the entire rental period. This commonly happens when projects and schedules change, leaving machines unused.
- Sometimes you'll need a rare model or uncommon equipment type. In these cases, you have to wait to start your project until the equipment is available. This causes downtime and delays. Thankfully, Heavy Machinery Hub has a large inventory for you to choose from!
Finding the Right Heavy Machinery
Choosing between renting vs. buying construction equipment is the starting point. The other part of the battle is finding the right equipment.
Going between dealers to compare different brands, models, and prices is a headache. That's why Heavy Machinery Hub does the work for you!
With little to no effort on your part, Heavy Machinery Hub will find the best deal for you.
All you have to do is go to Heavy Machinery Hub. If you're buying, select an equipment type of request free quotes. If you're renting, enter your specifications at the top to view listings.
