Construction Equipment: 4 Factors to Consider for Buying VS Renting
If you are a builder, you need to figure out how to handle the heavy equipment you will need. From loaders to tractors, there are a variety of types of expensive equipment to get for your daily business operations. You will first need to decide if you want to buy or rent the equipment. Here are some things to think about when making this decision.
Do you want to be in charge of maintaining the equipment?
One of the responsibilities you will have if you purchase the construction equipment is maintaining and inspecting the equipment. This is something the rental company would be in charge of if you were to rent or lease the equipment. When owning the equipment, make sure you are fully prepared to inspect equipment regularly, including before any of your employees use it. They also need to know what issues to look for so that you can get the repairs done promptly.
How often will you use the equipment?
A major consideration when deciding between buying or renting construction equipment is how often you will use it. If you are certain you will use the tractor on an almost daily basis at multiple job sites, it is probably worth it to buy the equipment. That way, you aren't paying more than necessary to keep renting the equipment and having it delivered to various job sites. On the other hand, if your business is just starting out, you might not be completely aware of how often different equipment is going to be used. In this case, it is better to begin renting the equipment.
Do you want to wait for it to be delivered?
Buying construction equipment as opposed to renting it allows you to always have it available. You don't need to worry about having the equipment available from a local rental company or have it delivered to the right job site each time. When you buy it, it is always available and stored wherever it is most secure. This may be at your place of business, or moved to different job sites and locked up until it is time to use that equipment.
Can you cover the insurance costs?
Not only do you need to pay for the initial cost when buying the equipment, but you need to pay to insure it as well. This helps to have some coverage in case you need to perform repairs on it or get it replaced if it is severely damaged. With renting equipment, they take care of the insurance for you, so it isn't necessary to add the equipment to your business insurance policy.
