Is It Beneficial To Hire Or Buy Construction Equipment?

By Author: Gemma richards
Total Articles: 33
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Construction work is not a small matter; it needs attention and planning Good construction need good quality raw material and proper equipments. One needs to think whether renting those equipments be appropriate option or buying. Surely initial cost will be the major factor in deciding purchasing or renting of equipments but there are several other things that one needs to consider when taking such big decisions.

Points to consider while renting or buying equipments

Current financial Situation

Consider your financial condition before buying or renting the construction equipment. Also, one must consider the future situation for financial status. Sometimes renting seems a good option as it costs less but if you need machine foe long term than it may not be a very good option as it seems .Also, when you own the equipment you can consider the return on investment when you sell it.

Reducing the Financial Impact

When you rent equipment, you pay according to the cost of the latest equipment available. Instead you can buy well maintained old equipment ...
... which will cost less and easier to purchase. Also it will be cost effective compared to hired equipment. Other than this you can finance your equipment purchase. One can give the organization an extra space by financing equipment purchase.

Cost of Hiring Vs Cost of ownership

Consider both, the cost of ownership and the cost of renting. With ownership comes cost of maintaining and operating , insurance and other government licensing costs which varies according to the type of machine where as these costs are not paid when a machine is rented. In renting, one has to pay the cost of transport while bringing the machine from the store.

Fuel cost is common in both, renting and purchasing. The fuel cost will be roughly one third of the total expenses.

Job Frequency

The term of work is most important factor in deciding whether the machine should be rented or bought. If it is a short term job and you need any specialized equipment than renting seems to be more sensible option. But with this One may also think of the times when the machine will be needed as sometimes if the project is delayed, rented machine will not prove to be a good option. If one is working on long term projects than a multipurpose piece of equipment like loaders, forklifts, excavators and trucks that can be used for various projects proves to be great assets on any job site.

Fleet management and Inventory control

Managing the equipment is also an important aspect to choose between renting and buying. If one has the skills and capability, also time to maintain the machine in a proper way, this will be inclusive of all the expenditures like maintenance charges than one should go for buying the equipment. If one doesn’t have all this than pay some extra money and rent the machine required. For short term jobs one may think of renting but buying gives you extra flexibility. Also when you are not sure of timing of project and if the project extends than renting can be a problem.

Availability and Usage

The biggest advantage of buying construction equipment is that the machine is available for whole time. This will provide you flexibility in terms of project delays and unexpected changes. Before deciding to rent or buy the equipment calculates the risk of availability of equipment. Owning the equipment can be influential to clients as well.

Pros and Cons

Renting has lower initial investment whereas owning includes extra expenditures. Goods host hire gives you broader range of equipments at all the times according to your needs whereas in owning you get a return on investment when you no longer need the equipment. Sometimes return on investment may not be positive. Renting generally offers latest equipments whereas owning leads to more flexibility as the equipment is available whenever you are in need. In renting the maintenance cost, insurance and other charges are handled by other party in contrast owning offers less downtime and possible tax advantages.

Sky High Access Ltd offers a wide range of material hoists, transport platforms and powered access for hire or for buy. No matter what your needs might be, they can offer you a wide range of access platforms to make your work much easier.