Should you buy or rent your earthmoving equipment?
If you run a construction company, you may occasionally have a need for earthmoving equipment. This type of equipment helps to move dirt, rocks, and other natural materials for excavation, digging trenches, and leveling ground. Equipment like excavators, trenchers, skid steer loaders, and bulldozers are often needed. While buying the equipment is convenient, it might not be the right choice for you. Here are some questions to ask yourself when deciding if you should rent or buy the equipment.
Will you use the earthmoving equipment on a regular basis?
The first thing to figure out is exactly how often you will be using the earthmoving equipment. If you think that you only have a need for an excavator or bulldozer maybe once a month or so, buying it might not be the best option. On the other hand, if you see that you will start doing more excavating or trenching in your business, it can actually be cost-effective to buy instead of rent. Renting equipment over and over again does tend to add up.
Do you have a limited budget?
This is often the reason business owners decide to start renting equipment instead of buying it right away. Earthmoving equipment can be expensive, especially when buying it new. While it is undoubtedly convenient to own this equipment, it is not always in the cards if you are starting a new business and don't have a lot of capital yet. Unless you can get a business loan that helps cover some of the equipment, you may be better off renting it. However, don't forget about the possibility of buying used equipment.
Are you concerned about having it available when you need it?
Also consider what you go through when renting equipment, including what the process is, how you get it delivered to the job site, and how long this takes. If based on past experience, you tend to have very little time to access the equipment due to scheduling constraints, paying more to buy the equipment is probably a better option for you. On the other hand, when you know you tend to have at least a little extra time to work out the details and schedule delivery of the equipment, renting can still be a good option.
Is getting routine maintenance and repairs an issue?
One major benefit to renting earthmoving equipment is that the rental company usually handles all maintenance and repairs. Whenever you rent the equipment, it should already be in good condition and you don't have to worry about inspections or breakdowns. Even if there is an issue with a trencher or skid steer, the rental company will repair it and provide you with a replacement to use.