Wednesday, February 20, 2013
To Rent or Buy Equipment
Even if an excavation company plans out a project carefully, there will really come a time when there is not enough equipment available to work the requirements of a project. At some point, you will be running out of time and the choices you will have are between buying the machines you need or renting them out.
Now, it is not going to be easy to make these kinds of decisions. There are a number of factors you’ll need to consider.
Rental Price
The price to rent will vary and depend on what type of equipment you need. Some may cost as much as 12,000 dollars a month, just like the off road dump trucks and excavators. Even if you own a big and profitable company and are working on a big project, such price is definitely outrageous! This is because some rental companies make a killing with the machines they rent out. You can rent their equipment on a daily or weekly basis and price can be very high or just right, depending on what area you work in.
Buying
If you work on large projects more often, need more equipment and don’t want to rent, then you should choose to buy your equipment. This will save you money in the long run, provided you’ll be using the equipment again. However, if you only need the machine for one or two projects then it will be wise for you to just rent it. You won’t own the equipment but you don’t want to buy anything you won’t be using either.
Servicing
One of the advantages of renting the equipment is that your company won’t be responsible for fixing anything that breaks. It is the company you rent the machine from that is responsible for any repairs since you don’t own the equipment. The price for repair is usually included in the rental contract. Hence, if something goes wrong, you just need to call the company and they will come and fix the problem.
On the contrary, if you choose to buy the equipment then your company will be responsible for the repairs and regular maintenance and services of the equipment.
Aside from the factors mentioned above, you also need to consider your finances. If you cannot afford to buy the machinery then you should go with renting. So whether you decide to rent or buy, what is more important is you’ll get the machines you need to accomplish your job and stay ahead of time.