When you are in need of heavy machinery or trucks for your business, you may consider two things: renting or buying them. Each of these options has its advantages and disadvantages. Use of heavy equipment in business is crucial in delivering jobs on time. The need of your company for heavy equipment depends on several things, and each needs to be weighed carefully so you can arrive at the best decision that will benefit your business the most. So, will you rent or buy your equipment? Here are some ideas to help with your decision-making.
Financial Capacity
Your company’s capacity to purchase heavy equipment should be evaluated carefully. Do you have the money to buy it in cash or do you need financing help from an institution? Whether you will buy in cash or take out a loan, calculate the costs and if it will be viable in the long run. But if in the beginning your company doesn’t have the capacity to pay for the financing, much less in cash, then renting equipment is your best option.
Frequency of Use
If you have several projects down the line that the equipment will be useful for, then buying it will be more advantageous. And if you already have a storage space for the equipment while it is awaiting its next use, then you can go for it. Renting will benefit you if you only have a project or two that you will need the equipment for. The overhead costs will cripple your business if the equipment is only good for a couple of projects.
Equipment Control
Owning plant entails several other responsibilities, such as taking care of the taxes, insurance, upkeep and others. If you know how to do these things by yourself, then you can save money if you opt to buy. Otherwise, paying extra in rental fees is better for your business. Because then you will not have to pay for the salary of someone to manage your equipment.
Availability
The best thing about buying your own heavy equipment is that you can use it anytime you need to. You don’t have to wait for it to become available. As long as it is in good running condition, you can readily take it out of storage. In terms of renting, if the equipment you need is being rented by another company, you have to wait for it to become ready for use again. It will mean that your project’s timeframe will be affected.
There are several companies that you can consider if you opt to rent, such as Ruttle Plant Hire. One of the advantages of renting is that everything is handled for you: the equipment, operation, maintenance and other miscellaneous tasks such as taxes and insurance, albeit being a bit costlier.