Many pieces of heavy-duty equipment are actually available for rent or hire to contractors, so that you don't always need to buy the items you need for your business. However, you might wonder if buying is the right choice so you always have that equipment available. Note a few factors to consider so you know if heavy-duty equipment hire is the best choice, or if you should consider buying those pieces outright.
Cost of long-term ownership
The purchase price of equipment is not the only cost to consider when thinking of buying versus hiring or renting. You need to consider insurance that is not provided by a rental agency, maintenance, and storage of these pieces. There is also the cost of having a licensed operator on staff to operate them; with a rental piece, you may be able to find equipment with an operator included in the hiring price.
While these costs may be considered as deductions for your business, they may outweigh the convenience of having a piece available at all times and may be so steep that they don't actually create the best financial situation for you. Remember that hiring a piece also means deducting that cost from your taxes and this is a short-term cost, not something you need to work into your company's budget permanently. Consider these long-term costs when thinking of owning a piece, versus just the cost of purchase alone.
How often will you realistically use a piece of heavy-duty equipment? For some construction contractors or demolition companies, you may always need a heavy-duty crane or other such piece for each job, but many contractors find that they don't need these types of equipment for every single job. It can be better to rent them for the few jobs you take on each year that require a crane, backhoe, and other such piece if you know you won't be using the equipment on every single job site.
Upgrades and changes
One drawback to owning equipment is that you have just that one piece of equipment; if you have a different type of job ahead of you, a certain crane or earthmover that you've purchased may not be the best choice. However, if you choose to rent or hire equipment rather than buy, you can opt for the best pieces that will work for each type of job. You can get upgraded equipment with an advanced control panel, more lifting capability, and whatever else you need so you can take on different jobs or a variety of jobs as it best suits your company.Share