5 Things to Consider when Deciding Whether to Buy or Rent Construction Equipment

When you need additional or new construction equipment for a big contract or expansion, you need to decide whether to buy or rent. Considering the pros and cons, it is smart to assess your company’s situation, financial status and future plans to choose the best method of acquiring equipment. When to buy is something to be studied carefully, considering important factors and choosing what would be more advantageous to your business.

1. Your Needs

If you do not use a piece of equipment 70 per cent of the time or more, renting might be preferable. However, if you use the equipment more frequently, leasing or purchasing is better when you think of the long term. If renting costs more than owning it, then it is time to buy. It is also better to buy when the right equipment is not immediately available. If a machine can perform various jobs, it also makes sense to own it.

When working with a plant hire company, you can try new equipment and make significant comparisons before making any purchase. Upgrading to new equipment allows you to bid more competitively because you can increase productivity while reducing costs and improving the quality of the work you do. Renting can offer you a way to test equipment and calculate earnings and efficiency in a cost-effective way.

2. Interest Rates

Manufacturers and dealers provide businesses with financing schemes to attract them to buy. Some even offer low to zero interest rates over a specified period on certain purchases.

3. Capital Expense and Tax Incentives

Consider financial factors when renting or purchasing equipment. Rental expenses are considered a business expense. The purchase cost of equipment is a capital expense. You cannot subtract the entire purchase cost in the year it was bought, as capital expenses are amortized over the life of the equipment.

4. Resale or Depreciation Value

Compare different models and brands of equipment when deciding to purchase. Some machines offer more value, or will be worth more when you try to sell them in the future. Select the machine based on yearly performance and depreciation because it can help you decide which brand or model to buy.

5. Transport Costs

Do not overlook the cost of equipment management, which includes transportation. Consider the cost of the driver, truck, diesel and loading and unloading time. It could make more sense to rent than to transport the equipment yourself.

If you think renting is better than purchasing equipment, you need to decide whether to do it from a plant hire company or directly from a distributor. Renting from plant hire firms allows you to deal with knowledgeable staff that focus on construction equipment. Distributors tend to focus only on a certain type of equipment. Do your homework and make sure to choose a reputable plant hire Lancashire company.