So much depends on the size, capabilities, and condition of your fleet. Buying new or used machines is a part of growing, but it is of course a major expense. And there are lots of benefits to replacing aging heavy equipment with newer machines. But whether you’re expanding or turning over some of your fleet, don’t overlook the many benefits of renting heavy equipment as an alternative to purchasing.
Take a look at some of the primary benefits of renting heavy equipment below. When your fleet needs change, considering these factors can help you make a smart decision as to whether you should buy or rent.
Advantages of Renting Construction Machinery
- One of the biggest benefits of renting heavy equipment is obviously that it’s much less costly than purchasing machines.
- It’s a convenient solution for temporarily increasing work capacity for a tight project timeline or when a project is falling behind schedule due to machine limitations.
- You can access specialized machinery and capabilities for a job that requires them, but that you don’t typically need.
- Expand the types of projects you bid on and accept without the upfront financial burden of buying heavy equipment you need for them.
- Maintain competitiveness against larger companies with bigger, more diverse fleets without needing the capital to buy everything they have.
- Renting construction machinery allows you to try it out, experience its operation, test newer features, and see its performance under real-world conditions.
- Access newer heavy equipment with updated safety, efficiency, performance, and productivity features than those on older machines in your fleet without the cost of replacing them.
- Don’t commit to storage, maintenance, transportation, and other long-term logistical costs and resource needs associated with ownership of machines you don’t have permanent use for.
- Adapt cautiously to company growth without purchasing heavy equipment before you’re sure you’ll require it on an ongoing basis.
- There may be immediate tax benefits, too. Often, you can claim full rental costs as deductible business expenses, while purchase price must often be depreciated over many years.
- If you want a business loan, owned machinery is considered capital equipment debt that can work against your borrowing power, while lenders don’t factor in rental costs as a liability.