If you are a construction company that does a high amount of volume, you might come to the crossroad where you have to decide that you want to own your heavy equipment versus always renting your equipment. It really depends on the cost to rental advantages that you might have to review before you decide.
There are a number of factors that you should review with your business before you might decide to start renting heavy equipment.
There are many heavy equipment rental companies out there willing to rent their whole fleet to you at any given time. Most companies set their rentals for daily to even monthly rentals. It really depends on what type of flexibility your company needs and what time frame the rentals need to be. Depending on how long you get these rentals for will determine the price of the equipment rental.
There are different types of rentals that you can get when renting heavy equipment. You can get cheap rentals like forklifts and bobcats, or you might have to rent some very high end equipment like excavators and dump trucks. The more high end products can cost you as much as $10,000 dollars a month. You might think to yourself that this is crazy, but if your job is a high paying, high demand, then you should be willing to pay whatever it takes to get the job done.
If you find yourself renting the same equipment over and over and paying high dollar for this equipment, then you might start to think about buying this type of equipment. You need to look at the overall picture when purchasing your equipment. If you are willing to sustain these types of projects, you might want to seriously consider buying your equipment.
If you buy your equipment, you will save money in the long run. You will be able to pay off your equipment, and then have usage of the equipment, free and clear in the future, putting more profit in your business. The only thing you need to keep in mind is you want to make sure you are going to be using this piece of equipment for a long time.
One of the advantages of renting is that you never have to pay for the servicing of your equipment. If the equipment stops working, you simply call your salesman and get a new piece of equipment to your job site. The price for fixing the equipment is usually covered in the rental agreement.
If you own the equipment, you need to have someone in house that can fix it, or it can be very expensive. You will also have to have someone at your shop maintaining the equipment.
Whether you decide to buy or rent the equipment, you will want to gather all your information, decide whether this is a great choice for your business, or if you should just continue to rent. Make a great choice for your company, but the great part is, at least you have a choice.