Cost is a huge factor when you rely on heavy equipment for your business to function. Sometimes it makes sense to buy, but there are some real benefits to renting. Let's take a look at some of them.
1. Purchasing new equipment is a steep financial investment. This is especially true for those who are just starting their business. Renting, rather than purchasing a whole fleet, will keep you from assuming too much debt at the onset.
2. Equipment ownership comes with some overhead that doesn't exist if you're renting. Ownership means storing when it's not in use and that comes at a cost. Renting equipment allows you to use the equipment and then give it back to the fleet owner, who takes care of storage or sends it out on the next rental opportunity.
3. Renting equipment allows you to get a feel for the latest tech in newer machines prior to investing in ownership. Upgrades and advances in technology are happening all the time and equipment operation is no exception. When you make a purchase you will be committed to one machine for a lengthy period of time, while renting allows you to try newer models as they come out. It's a great way to help you make an informed decision about what will work best for your business.
4. No worries! Upkeep, compliance and repairs are done by the equipment owner. If you’re renting, you can spend more time working and less time worrying about downtime due to upkeep.
5. Take on specialized projects. When you need a specific type of machine that you don’t have for a new project, it’s easier and more cost effective to rent while you determine if this is a machine that will be useful to have in your fleet. It’s a smart approach to expanding your business offerings. Different types of equipment and a plethora of attachments are at your disposal, so if you only need a specific attachment once in a while, the flexibility of a rental just makes sense.
6. Tax deductions! Rental costs are a deductible expense, while purchases have a set depreciation value.
7. Rental Purchase Options. Sometimes you can rent a machine to try it out and then if you decide to buy it, a portion of your rental fees may be applied to your purchase price. If you decide you don’t want to buy it, you simply return at the end of your rental contract.
8. If your industry is fickle and you can’t predict how the economy will affect your business, renting allows you to do the work when it’s there, but not be committed to a long term monthly payment should there be a shift in income for your business.
9. Renting equipment means less downtime. Less money lost. If you have a machine down, rather than delay your job or pay an employee while they wait for the fix, you can rent a machine to fill in the gaps and keep things running smoothly.
There is no "one size fits all" approach. With careful consideration of the total costs of ownership versus costs of renting equipment, you can make the best decision for what fits your business model. You can count on Highway Equipment & Supply Co. to be there for ALL of your equipment needs!
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