If you’ve got a lot of construction projects ahead, you may be wondering if it’s worth renting or buying construction equipment. Aside from initial costs, there are a few things that will need to be factored in before making a big financial decision. We take a look at the top questions to ask in our blog on ‘Should you rent or buy construction equipment?’
Can you afford to buy heavy equipment?
Undoubtedly, one of the biggest deciding factors when it comes to choosing between renting and buying equipment is whether you can afford it. though renting may seem like a better financial decision, you’ll want to factor in how long you plan on using the equipment for. If it’s a one-off use or for a short time, then renting will be a better option. However, if the equipment is that something that will be regularly used by you or your employees, it’s worth paying more upfront as the cost by use will be remarkably lower. Also remember, you can sell the equipment later down the track, which will work out far less than renting it. If you’re unable to come up with funds needed to buy heavy equipment outright, there are plenty of machinery financing options available to help you out.
Regular use vs one off use
Next off on one of the questions you’ll need to ask before you buy construction equipment is how often you plan on using it. This is not only because of finances but convenience to you and your team as well. If you think the equipment will need to be used for a long period of time or see lots of potential jobs in the pipeline that require that construction machinery, it’s worth buying. Or if the equipment has multiple uses (excavator, forklifts etc.), then it’s definitely worth having in your toolkit.
When you’re renting construction equipment, you’re subject to an agreed lease term – but what happens if it ends and you still need to use the equipment? If the equipment has already been signed on to someone else, you’ll have to find another company to lease from if that type of equipment is scarce. This is not only a strain on resources but can also end up costing a lot more money. In the event you’re unable to source equipment, you may have to pause projects until that equipment becomes available, resulting in more downtime, less money coming in and potential damage to your business’s reputation.
When you should buy construction equipment instead of rent:
- If you are using equipment for a long period of time
- If the equipment you need is scarce
- If you require multi purpose equipment
- If you’re finding you need the same equipment over and over again
- If you have a steady cash flow and can afford to buy outright
Looking to buy construction equipment?
On the hunt for new construction equipment? Browse our range of diggas, excavators, skid steers, excavators and more or check out some of the equipment packages we have available. If you have any questions about the right equipment to use or finance options available, you can call us on 1300 794 684 or email firstname.lastname@example.org and one of our equipment specialists will be in touch shortly.