If you own the construction company, you would be in a dilemma of whether to buy the construction equipment or hire for Rent. However, both have their own pros and cons. The cost of this equipment would be huge that not many construction companies would be able to afford until and unless they get huge profits from the ventures they have started and completed. There are various factors that the companies would take into account to decide on whether to buy or rent the materials. The factors include depreciation cost, the maintenance cost of the equipment, insurance expenses, tax benefits, transport expenses, and compliance issues. The equipment would be used in the construction sites to lift, dig, filter, store, load, excavate, and trench. You have to do a cost and benefit analysis.
You must take the budget of the project, expertise levels, and inventory, the duration for which you want the equipment, and urgency into consideration when you want to Rent or buy materials. The equipment that is required by the construction companies includes forklifts, harvesters, compaction equipment, and earthmoving equipment. As per the cost-benefit analysis, the cost of new equipment would cost you a bomb when compared to renting the equipment. The cost of maintenance would also be high. The duration for which you would need the equipment is also considered, along with the labor cost. You also have to check the in-house capability to maintain the equipment and the cost that is required for the transport of the equipment.
You can buy the equipment in the following cases when you have a question about Rent or buy materials.
The rental companies that would provide the construction equipment for Rent would work with various clients. There are high chances for the equipment being unavailable sometimes as the other client of them may be using it. If the project has to be delivered on time and is a top priority, there is no option for you other than to buy the equipment. The best thing is that the equipment will be with you round the clock, and you can handle the last minute jobs and emergency tasks.
Depreciation vs. Rent
The construction companies would look for the financers who can offer them with the loan at the best interest rates to buy the equipment. However, the equipment would lose its resale value from the time it lands in your facility. You must calculate how much you are spending on finances and Rent.
Buy the second-hand equipment
If you are in urgent need of the equipment, go ahead and buy the used one, which costs you less. There are many construction equipment rental companies that are selling used equipment at an attractive price. You can grab that and use it for many construction projects.
When to rent the construction equipment?
The small to medium size construction companies must take the construction equipment for Rent instead of buying a new one.
Save a lot of expenses
When you buy heavy equipment such as earthmovers and excavators, you have to spend a hefty amount of money from the pockets. When you do not need them and plan to sell, you would not get the cost that you have spent while buying. It is best for you to rent the equipment to avoid these hassles.
Keep operational expenses at bay
If you buy the equipment, you have to hire a team who would maintain the equipment and keep it in tip-top condition. There are a few parts in the vehicles which must be changed over time. Instead of doing all this, you better rent the equipment.
No company would want to get into the compliance issues that they failed to handle. When you take the equipment for Rent, you do not have the headache of these compliance issues as all these are handled by the rental companies. So, you can happily focus on your construction project.