Renting vs Buying Construction Equipment: The Pros and Cons of Each
The construction equipment market is expected to be worth a massive $161.99 billion by 2030. If your business needs to invest in this type of equipment, you’ll be all too aware that it can be expensive, and you might be considering whether to rent or buy machinery.
But what are the differences between renting vs buying construction equipment? If you choose the wrong option, it could be a costly mistake that impacts your company’s bottom line. The good news is that this short guide is going to consider the pros and cons of each choice so you can make an informed decision.
Read on to find out more.
Table of Contents
- 1 Renting Construction Equipment
- 2 Buying Construction Equipment
- 3 Now You Can Decide Between Buying vs Renting Construction Equipment
Renting Construction Equipment
Renting construction equipment can bring a range of terrific advantages to both large and small businesses. Here are a few of the best benefits, as well as some of the potential downsides.
More Affordable Upfront and Ongoing Costs
When you rent construction equipment, you can enjoy paying a low upfront fee compared to if you were making a purchase. You will also not have to pay for maintenance costs as these will be the rental company’s responsibility.
Easily Upgrade to the Latest Equipment
Technology changes quickly, and you’ll want to use the best construction equipment to ensure your company maintains a competitive edge. To hire the most effective construction equipment that uses the latest technology, visit https://aosrental.com/construction-equipment/.
No Long Term Committment
You won’t want to have construction equipment lying idle when a contract ends, and renting allows you to return your machinery to the rental company. This can save you a considerable amount of money and help you to better manage your company’s cash flow.
No Resale Value
As you don’t own the equipment, there is no resale value. This is worth considering if you are hoping to sell your construction equipment at some point in the future.
Buying Construction Equipment
Renting isn’t your only option, and you could opt to buy construction equipment. Let’s look at some of the reasons this could make sense, and a few of the factors that could make it the wrong choice.
Equipment Is Readily Available
When a client gives you a new job, you will already have your equipment available. There will be no need to rent machinery from a supplier.
Your employees will have worked with each piece of machinery on a regular basis. This means there is no learning curve when they need to use your construction equipment.
Buying machinery is expensive and is usually a long-term investment. Therefore, you are likely to have the same machinery for an extended period. This can make it more difficult to adapt if your company could benefit from using more modern technology or a different type of construction equipment.
Now You Can Decide Between Buying vs Renting Construction Equipment
It’s vital to make the right decision between renting vs buying construction equipment. Some of the most important factors to consider are whether you want to minimize the immediate impact on your cash flow, and if you would prefer to enter into a short or long-term commitment. You should also think about potential new developments in construction equipment technology before you sign a contract.
This can help you choose the best option for your business.
If you’ve enjoyed reading this construction equipment article, check out more of our helpful blog posts before you go.