Benefits of Renting Construction Equipment
Purchasing brand new construction equipment can be extremely expensive and can have a huge impact on the budget for your business. In fact, purchasing equipment is a long-term investment that ties you to specific items of equipment. As the price of
buying construction equipment rises, the trend of renting equipment has become increasingly popular for a variety of reasons listed below.
1. Latest and Advanced Technology
It is a known fact that having the latest and best heavy equipment on the market can be the key to a thriving business. By renting, you enjoy updated technology while avoiding getting stuck with old, outdated equipment that is not so efficient and effective with the technological advancement. It gives you an edge over competitors to get up-to-date technology that offer recent-generation machines and gets the job done faster and more efficiently.
2. Prevent Storage Issue
Storage is not an issue for the company renting the equipment for construction. The renting company is obliged to take care of their machines & storage contractually. The cost of storage adds to the financial burden of owning heavy equipment.
3. Avoid maintenance costs.
Many rental contracts make provision for maintenance, repairs and spare parts of the machine. You neither have to maintain it, nor pay for maintenance costs if you choose to include in the rental agreement.
4. Transportation Logistics
Transportation can take a long time which affects a project's productivity and efficiency. In addition, time spent waiting for equipment will cause delays and hinder the progress that has already been made on jobsites. Renting allows you to avoid this burden and provides a more reliable equipment option by keeping pieces onsite.
5. Shielding From Market Fluctuation
The construction sector is dynamic and many things may influence the market. Rising or sinking costs of equipment or the number of jobs available are all out of your control. Renting equipment is able to cushion your company from any unpredictable financial downturns that may arise. Rather than committing to a piece
of equipment, leasing allows for a flexible option that makes it easier to handle the rise and fall of market forces.
6. No Depreciation Costs
When you own machinery, you incur considerable depreciation costs. Reselling equipment, and maintaining it as long as possible, requires quite a large investment on top of your upfront purchase. The value of owned equipment starts depreciating the moment the machines are purchased while the variable is completely taken out of the equation when renting equipment. As value continues to depreciate, it makes it more difficult to recover the cost of your initial investment.
7. Opportunity costs
If you buy instead of renting, you tie up capital that is no
longer available for other projects. That can cost you opportunities you would have liked to pursue. You can keep your options open by renting instead of buying.
8. Pursue new opportunities
Some projects require specialized equipment if they are to be done correctly and efficiently. Buying the equipment may not be economically viable.
9. Breakdown Assurance
Having equipment breakdown mid-project can really create a workflow issue, making equipment rentals ideal as it keeps equipment at the ready, and/or ensures a quick replacement or a prompt on-site repair.
Renting construction equipment also lets you try before you buy. You avoid the risk of large investments if equipment turns out to be unsuitable. It is always best to think about renting rather than buying, before you shell out hard cash for the privilege of being its proud owner.