During construction work, you often need heavy equipment to help you with the heaviest task. It actually, makes your work easier and faster with more precision. They become your helping hand at times and you just rely on them throughout the project. Being a construction contractor, your company’s financial status plays a big role in choosing what should you go for. You often look for the equipment and always want them to be ready in your inventory but the cost and financial coverage resist you to do so. So how would you know is the right time to get heavy equipment? And when exactly do you need to rent or buy heavy equipment from an industrial equipment supplier?
In this article, we have gathered a list of a few common reasons about when to rent or buy heavy equipment for your construction project.
- Financial Condition of Your Company
The company’s financial health is something that let you take some important decisions for your company. Sometimes, you get restricted due to this unfavorable financial condition, and sometimes, you get the thing which you were waiting for a long or spend money on extra expenses. This is the time when you need to be very careful about your expenses.
If you are in a good financial situation, you may easily have the equipment of your choice. But what if the finance is not in your favor? You now need to go for rent the equipment for as long as you need it. You only have to pay the renting charges pf the equipment regardless of paying the maintenance and another cost. The new equipment is already very expensive, you can check for the used equipment as well.
Apart from that, it is a kind suggestion that makes it a habit to save some money for wet days. The time when you are in dire need of equipment and you can’t pay even their rent charges then you may use that saved money.
- Compare the ownership and renting cost
Before having any construction equipment, always compare the cost of ownership and renting. It is necessary because sometimes, when you own equipment, you pay a huge amount and you do not need that equipment for long or for another project. So, it is better to analyze before purchasing as the ownership of the equipment brings the maintenance and other wear and tear cost as well. Further, you go for the insurance of your equipment and have to pay the high insurance fees. When you take ownership of the equipment, you also have to pay the shipment fees while on renting you can just enjoy having the equipment at your doorstep and have to pay the rent charges for how long you have used it.
Buying and renting both have their own benefits. Sometimes, when you own equipment, you can give your machine for rent when it is not in use to the other contractor. This way, you can reduce the downtime of the equipment as well as you may earn some amount from your unused equipment.
Compared to your company’s financial condition you can choose which option you should go for.
- Frequency of equipment needed
It means how often you need equipment for your construction projects. If you need equipment like a crane for your every other project and for a long time, then it is highly suggested to buy the crane so that you do not have to pay the rent charges for using it too often. In this case, renting will cost you higher as compared to the ownership of the equipment.
Some large and bigger projects will be required the equipment for pretty much longer time. In this case, this is a wise step to have the equipment in your inventory. If you are running out of money, you can go for the used equipment or take some financial aid as well.
- Control over inventory
When you have more than two or three pieces of equipment in your fleet, you have to keep them maintained. If you are capable enough or you have a good number of staff, then you may easily manage your fleet. It is another factor to consider during the selection of renting and buying of equipment. You already know that ownership of equipment needs a lot of care even after the purchase. If you can manage the new piece of equipment along with the other ones, then you may surely go for it. Otherwise, it is better to go rent the equipment for your project. Just use the machine, pay the fees, and you are done.
It is very important to know when is the right time to buy or rent heavy equipment from an industrial equipment supplier for your next construction project. Heavy equipment purchase is indeed a big investment, so you must be extra careful of the decision you take. In this article, you can know the detail of a few reasons for choosing between renting or buying.