Construction work often requires various tools and equipment for digging, loading, excavating, lifting, trenching, and storing. If you need some construction equipment, it’s essential to know when to buy or rent your heavy equipment.
Deciding how to get what you need may make a significant difference in your construction contracts, task executions, and project management. Also, considering the pros and cons of both acquisition methods, the choice may vary from one company to another.
Regardless of your project’s nature—whether you want to expand your company’s capabilities, execute some big contract, or replace your current equipment, there are several factors to consider before choosing between renting or buying a piece of equipment. These factors are:
- The cost of renting vs. buying construction equipment
- Your budget
- Tax implications
- Your company’s capabilities and financial situation
- Length of the project
- Availability of resources to manage the inventory
- Consider which method of obtaining equipment will most benefit your business.
When Should You Buy Construction Equipment?
If you’re executing a long-term contract or have several projects on the horizon, then purchasing may make more sense. Furthermore, you may want to invest in a multi-purpose piece of equipment such as skid steers, trucks, excavators, and folk lifters that can be used in a range of projects.
Another factor to consider when buying heavy equipment is the cost of financing and depreciation against rental. Usually, attractive interest rates and financing programs quickly help you acquire the equipment. But remember that the machinery starts losing its resale value when it reaches your premises. So be sure to assess the costs of financing and renting-hiring lifecycles.
You may also want to consider the availability of the equipment. Since renting firms work with many clients, there is a possibility you may not find the equipment you require when you need it. Therefore, if your project is urgent and you can’t afford to wait.
When Should You Rent Construction Equipment?
There are many reasons construction companies choose to rent equipment rather than buy new ones. For example, larger firms can improve their fleet management and inventory control. Small and medium-sized firms can acquire specialised equipment at relatively lower costs. If you’re working on a short-term project, renting a piece of equipment makes financial sense for that period.
Equipment rentals can also help you avoid operational expenses. When you purchase heavy equipment, you will need a specialised team to frequently service and maintain the equipment. The rental company will cover any equipment maintenance, repair, or upgrade needs when renting.
Renting construction equipment may also attract some tax benefits, depending on the nature of your business. It can also help you reduce the waiting time since you can rent the machinery with a quick turnaround time. In addition, choosing to rent equipment can unlock new opportunities that are beyond your business scope.
How Conveying & Hoisting Solutions Can Help
Conveying & Hoisting Solutions is Australia’s leading equipment rental company. We provide high-quality construction equipment at affordable rental fees and excellent customer service. We offer free site inspections to ensure you get the right equipment for your unique process.
You don’t have to worry about transport, storage, or maintenance when you rent our equipment because we do it all. Need quality construction equipment urgently? Count on our fast delivery to anywhere in Australia. Get in touch with us to request a free quote and get started.