This question is often asked: Would you rent or buy heavy machinery. The answer is ‘yes’ for rent from the majority of respondents. Heavy machinery rental is worth the move. It saves money on maintenance and on repair costs. Maintenance costs and repair costs are by far lower for rentals. That said, there is also the other view.
Those leases come with high-interest rates and high insurance rates. That purchasing heavy machinery is cheaper. Taking heavy construction equipment on lease will not make sense if the rented machinery stands idle for the most part of the lease period.
Penalties have to be paid if the lease is broken before time. So you are stuck with the rented machinery even when there’s no work to employ them and the rented machinery will stand idle.
Go for Heavy Machinery Rental
But break down further and the answer is different. The consensus is, it’s wiser to go for heavy machinery rental rather than to purchase outright. Again, it is cheaper. Buying heavy machinery takes a huge chunk of money out of the total company budget. Buying heavy construction equipment can leave the company short with cash and tight-fisted by nature!
Renting does not put anybody in such a frame of mind. Money not spent to buy outright earns interest and can be used for other essential needs which cannot be taken for rent – like office space, for instance, at more than one place, wherever the construction sites are spread out. How about buying a warehouse! Taking machinery on rent leaves you liquidity to spend as you see fit. Maybe a big order comes out of the blue and raw materials cost a package.
Rental Saves You Additional Costs
Let’s talk of maintenance costs. Repair costs. These costs are cheaper for rented heavy machinery. Heavy rented machinery, if they break down or develops a difficult-to-repair snag, can be replaced with another of the same piece of machinery from the heavy machinery rental company.
Besides, there is no need to employ a maintenance engineer and pay him a regular salary along with all the perks! Then, again, buying outright heavy construction equipment means there are additional expenses, like storage and transport. These are not piddling costs.
Consider these Costs, too
Next, consider insurance and taxes. Heavy machinery rental saves on these costs, too. Both insurance and taxes could amount to a hefty amount. Paying insurance and taxes on heavy machinery you own is expensive. Why add to the existing costs? Also, nobody can buy the entire plant. It will cost the sky. But it is possible to rent most of the best heavy construction equipment required with far less money spent than buying one piece of machinery.
Summing Up
The big point is heavy construction equipment cannot remain parked in one place the whole year round or even the entire month round. They have to be moved from one construction site to another construction site. Often there is more than one construction project being implemented at the same time at different locations in maybe different cities.
And, both the projects may require the same piece of machinery for a similar sort of work. In such situations, reaching heavy machinery rental is far wiser than buying machinery left, right, and center.
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