Renting vs. Buying Heavy Equipment

Construction companies have a few options to get the machines they need for each project — they can invest in a new addition to their fleet or rent the equipment for the duration they require it. Both choices can benefit your business and daily operations, but first, you need to understand how the two differ in how they’ll impact your budget, overall flexibility and project management.

A few key considerations for renting vs. buying heavy equipment will help you determine the right choice for your business.

Costs and Financial Flexibility

Consider your budget and how much financial flexibility you require. Renting heavy equipment is a very economical solution that affords many companies access to better machines than what they could readily invest in right now.

Choosing rental equipment also means forgoing many of the expenses associated with ownership, such as transportation and storage. Businesses can get the equipment they need without tying up too much capital and compromising the projects they can bid on.

However, purchasing the equipment may be more cost-effective if your business utilizes a particular machine frequently or requires it for long-term use. In many cases, owners can save costs by depreciating their machines each year and deducting certain expenses like maintenance, replacement parts and service.

Those who are interested in investing in their equipment can also save costs by selecting used models rather than brand-new options. Used heavy equipment can deliver the power and efficiency your business needs when carefully maintained and operated.

Equipment Utilization

How you plan to use the equipment is an essential consideration for businesses, and there are a few elements to keep in mind:

• Frequency of use: If your projects require a particular machine on a regular basis, it is often cost-effective to buy heavy equipment rather than rent it in the long run. Renting is the preferable choice when you only need the machine occasionally or for a special project.
• Project duration: Consider the average length of your construction projects. If you have an upcoming long-term job that will require a piece of equipment not currently in your fleet, buying may be the better option. Renting gives you greater flexibility to meet the needs of sporadic and short-term gigs.
• Seasonal demand: If your business needs to fulfill seasonal demands, such as brush cutting or snow removal, renting is a fantastic way to get the tools you require without wasting money during the months when those machines are not useful to your operation.

With equipment utilization in mind, you can make smarter financial decisions and ensure the machines in your lineup are useful to your operations.

Maintenance and Repair Needs

Another important factor to consider when choosing to rent or buy heavy equipment is ongoing maintenance and last-minute repairs. When you invest in a machine, you are in charge of establishing and keeping up with a preventative maintenance plan to ensure your equipment is operating at peak performance for as long as possible.

You’ll need to schedule professional inspections and ensure servicing aligns with your plan. If a breakdown occurs, your business needs to tend to the repairs to get the machine up and running again without too much downtime or delaying a current project. Managing maintenance and repairs can ultimately be a juggling act for busy owners.

By renting, you can forgo most maintenance and repair responsibilities. The dealer will likely take care of these things for you, and you can reap the benefits of a well-maintained machine that is ready to work when you are. Your business does not have to invest the time, money or energy into routine inspections, servicing and repairs.

In cases when a breakdown occurs with a piece of equipment you own, renting allows you to get the tools you need last minute without having to wait for repairs.

Technology

The latest construction equipment technologies can supercharge your daily operations. These tools will help your team increase visibility, productivity and efficiency while offering valuable insights into your project data. They can also offer advanced safety features for detecting potential issues before they become serious and costly problems. Ultimately, the technology your business has access to directly impacts how quickly and effectively you can get your projects done.

Purchasing a newer piece of equipment can give your team access to some of the most dynamic software solutions available in the construction industry. However, all these amazing benefits can come with a hefty price tag.

If your business is not in a position to invest in equipment with advanced tech, you can still harness the powers of these tools by renting. Your construction business can take advantage of equipment rentals to experiment with newer technologies and determine if a specific solution is right for your operations. Plus, you will not be responsible for keeping up with ongoing system updates and integrations like you would if you purchased.

Additional Factors to Consider When Renting vs. Buying Construction Equipment

Businesses should consider a few additional elements when deciding how to secure their next machine:

• Transportation: Renting can be a great option for companies that do not have the means to transport equipment, especially large models, to different job sites. The dealer typically covers the equipment transport and unloading for each job, which is particularly advantageous for long-distance projects when transport costs rack up quickly.
• Storage: When you purchase equipment, you are responsible for finding adequate and secure storage for it. Consider the associated costs and how storage may impact your insurance premiums.
• Availability: One of the key benefits of buying a machine is knowing your business has access to it when it is needed, while rental equipment could potentially be unavailable or have a waitlist. However, renting is a great choice for fulfilling niche project needs.
• Try before you buy: If you’re considering purchasing a new piece of equipment in the future, renting allows you to try the machine, ensuring you choose a good fit for your fleet before making the investment.

Browse Equipment Rentals and Sales Options From Warren CAT

As the authorized Cat^® dealer in West Texas and Oklahoma, Warren CAT is here for all your heavy equipment needs. We are a full-scale solutions provider with new, used and rental inventory readily available to tackle your next project.

Our team is here to help you discover the right machines and models for your unique job requirements. Whether you’re looking to expand your current fleet or secure a piece of equipment for a short-term project, we’ll ensure you get the equipment your business needs to thrive.

Contact Warren CAT or find your nearest dealer location online to get started today.