Deciding between renting or buying the heavy machinery you need might seem tough. However, this article was created to help. Discussed below are all the points to consider when deciding between the two. Read ahead.
Purchasing a heavy-duty machine means you’ll have to pay thousands of dollars. Going the renting route might be better, as you’ll barely be paying in comparison. You’ll especially be saving if you choose the right company to rent from – they may offer more affordable rates than others.
In turn, if you keep having to rent the machine, and you do this for years, you might end up paying more than you would if you were to buy it.
Buying instead of renting has many perks, and one of the best would be that you would have equity. If anything were to happen to your business and you need cash, you can sell the expensive machine you own. You could at least rent it when you need the additional cash too.
If you apply for earthmoving equipment finance, you’ll have to keep making payments until the debt has been finished. What’s great is making the payments regularly will result in your credit score increasing. You’ll be able to borrow larger sums in the future.
When you rent, you’ll be getting machines that are a couple of years old and have been used by many people. Their condition won’t be that reliable, as a result. This might be a problem if you need to do a major excavation project and end up getting an excavator that breaks in a couple of days.
Instead of renting, you could also lease. The two are similar, but you’ll receive a brand-new machine instead.
Owning the machine, you need instead of renting it would feel like an accomplishment. No one will blame you if you purchase it just because of this. After all, earthmovers, excavators and semi-trucks are assets.
If you own the machinery you need, you will be able to use it for anything you want. This won’t be the case if you’re renting, though. There’ll likely be many stipulations on what you can use the machine for. Of course, who you’ll be renting from would affect the restrictions, so it’d be best to look around hard before settling on someone if you’re going this route.
You might need a specific excavator model. There’s a larger model selection at the shops that let you rent compared to the ones that just let you buy. At the end of the day, more people rent heavy machinery than buy it, so this wouldn’t be a surprise.
All in all, what do you think about what was discussed? There are quite a few points to consider when choosing between buying or renting the machine. Personally, buying might be the way to go, as you’ll be owning assets that you can lease. You will also be able to do whatever you want with what you bought, while there would be restrictions if you were renting.