Equipment: Should You Rent or Buy?

There are always going to be times when, no matter how carefully an excavation company plans out a project, there simply isn't enough equipment on hand to handle the requirements of the project without running out of time. The choices at this point are clear - rent the machines you need or go ahead and make the purchase.

It is however, not easy to make these types of decisions, thanks to several factors that you'll need to consider.  

Rental pricing

Its no secret that rental companies make a killing with the equipment they rent out. Most companies will rent on a daily or weekly basis, which is good for them but can be bad for you. Depending on what area you work in, the price can be very high or just right.

Depending on what type of equipment you need, the price to rent will vary. Excavators and off road dump trucks are among the highest to rent, as they can cost as much as 12,000 dollars per month! This may seem a bit outrageous at first, although if you own a profitable company and are working on a big project, you'll have problems meeting the price.

Buying

When you need more equipment and don't want to rent, you can buy your equipment. Buying is the way to go if you plan on using the equipment more. If you work on large projects on a frequent basis, you may want to look into buying the equipment you need instead of renting.

Buying will save you money in the long run, providing you are going to be using the equipment again. If you need the equipment for one or two projects, you may just want to rent. Sure you won't own the equipment, although you certainly don't want to buy something you won't be using.

Servicing

One of the great things about renting is the fact that company you rent from is responsible for fixing anything that breaks. Your company won't be responsible for repairs, as you don't own the equipment. If something breaks or goes wrong, simply call the company and they will come out there and fix the problem, as the price for repair is included in the rental contract.

If you choose to go ahead and buy the equipment, then your company will be responsible for the repair of the equipment. As you probably know with owning other equipment, you'll need to do regular maintenance and service on the equipment.

Making that final choice on renting or buying is ultimately up to you. You should always think about finances, and if you can afford the machinery. If you don't have the finances or capital to buy what you need, you should go with renting. Either way you go, you'll get the machines you need to complete your job and stay ahead of schedule.