One of the most important aspects of running a construction company is acquiring the heavy equipment you need to complete jobs. After all, trying to tear through concrete or construct large buildings by hand isn’t the most efficient business practice. Then question arises: should you rent or should your heavy equipment? The answer will depend on a variety of different factors regarding your priorities and business practices. To help you decide, check out our list of what to consider when renting vs. buying heavy equipment.
Rental Costs vs. Ownership Costs
One of the most important factors to consider when purchasing heavy equipment is the cost. Before deciding, take the time to compare the estimated cost of renting the machinery vs. the estimated ownership costs.
When approximating the ownership costs of heavy machinery, make sure to account for more than just the initial purchase price. Because you will be completely responsible for the machinery, you will need to factor in maintenance costs, potential repair costs, and replacement costs for tires and tracks when they inevitably wear out.
Availability of Equipment
Equipment availability can have a large impact on what jobs you can take as well as the success of your business. As such, it’s important to consider availability when choosing whether to rent or buy your heavy equipment.
Purchasing it is ideal because you’ll always have access to it and, thus, will be able to take on jobs without advanced notice. Such 24/7 availability will also provide the added benefit of being able to accommodate project schedule changes more easily. Renting heavy machinery, however, requires advanced planning and could result in lost business or increased downtime if you aren’t able to rent a certain type of machine when you need it.
Length and Frequency of Jobs
Other important factors to consider when it comes to renting vs. buying heavy equipment: include the length and frequency of your jobs. Determining how often and how long you will use the piece of heavy equipment will help you determine if purchasing costs are ultimately worth it. If you expect to only require the equipment for short, occasional jobs, a purchase might not make sense. However, if you’ll need the equipment for most jobs you complete, or require it for a long-term project, purchasing may be more economical than renting.