Whether you’re interested in New Holland skid steers or Kubota excavators, you have two choices for obtaining the necessary equipment. The question is, should you buy it outright or rent it? Let’s find out.
Every construction firm needs access to heavy equipment. Whether you decide to rent yours or buy it depends on various factors ranging from what type of equipment you need to how well-established your company is.
Let’s look at the pros and cons of renting vs. owning New Holland skid steers, Polaris UTVs, and Kubota heavy equipment so that you can decide which approach is better for your company.
The Benefits of Buying Heavy Equipment
Buying heavy equipment is the most obvious solution for business owners who routinely perform the types of work that require specific machines, particularly if they’re already well-established and have the budget to buy high-quality equipment.
The primary benefits of purchasing construction equipment outright are that it’s more convenient and cost-effective in the long run. Purchased equipment can be seen as a business asset, while rented equipment is only an expense.
The Drawbacks of Buying Heavy Equipment
Buying heavy equipment is only the most sensible solution for larger companies that are well-established and have many clients that require the same types of work. If companies only occasionally perform work requiring specific types of heavy equipment, it will sit unused for longer periods.
The primary drawbacks of owning heavy equipment are that construction businesses need to provide their machines with all the necessary maintenance and repairs and that the equipment must be stored while it’s not in use. Heavy equipment also depreciates over time, losing some of its resale value.
The Benefits of Renting Heavy Equipment
In some cases, renting heavy equipment is the only reasonable option. If a contractor only needs a machine to finish up one job, it would make no sense to purchase it outright. Renting the equipment is more cost-effective and less of a hassle.
The primary benefits of renting heavy equipment are that it’s more convenient for businesses that only use the machines occasionally, and it doesn’t require business owners to provide their own ongoing maintenance.
The Drawbacks of Renting Heavy Equipment
Eventually, if a contractor continues performing similar types of work that require the same machines, the scales will tip, and it will make less sense to pay rental fees. As companies grow, many begin to invest in heavy equipment instead of rentals.
The primary drawback of renting heavy equipment is that it can be inconvenient and expensive. Companies that use the equipment frequently don’t want to pay high rental fees or deal with potential hold-ups like unavailable equipment. For them, it’s better to buy.
Rent or Buy: Which Is the Right Solution?
There’s no one simple solution that applies to every construction contractor. For some, renting equipment for specific jobs is the most sensible approach. For others, purchasing New Holland skid steers, tractors, and excavators can be seen as a solid investment.
The most important question isn’t whether to rent or buy. It’s which dealership to trust with equipment purchases and rentals. Find one with a reputation for great deals on name-brand machines to get the best results.
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