Buying or Renting Construction Equipment: Which is Better?
If you have some big projects coming your way, deciding to whether to buy or rent the required construction equipment and tools could be very difficult. There are several advantages and disadvantages associated with both. Evaluate your company’s current situation (financial capabilities and otherwise) and your plans before making a decision that will be most advantageous to your business. If you are seeking backhoe rentals in Sudbury and Timmins, Equipment North Inc can help. We strive to provide you with top-quality equipment and services. We also provide mining and underground equipment.
If you are expanding your company, then buying equipment may be a good option for you. Though the initial cost is a major factor in the decision-making process, it will certainly make your life easier in the long run. There are also other factors such as usage and availability that you have to consider before making a decision.
What to Consider Before Going Ahead?
There are a few things to keep in mind before choosing what’s best for your enterprise, such as:
• Financial Situation
It is essential for you to determine whether you currently have the capital to buy the equipment or if renting is a better option. You should also estimate your project costs over several months or years and remember renting costs add up quickly. Over time, you may end up spending more, particularly when you do not use the equipment much. On the other hand, you can get a good return on your investment by selling the equipment when you don’t need it anymore.
• Determine the Cost of Ownership vs Renting
If you want to buy construction equipment, you should be ready to spend on maintenance. You also have to pay the operating costs, insurance and other fees, such as government licensing. Renting, on the other hand, is an inclusive cost. As the rental company has to turn a profit, the rent usually includes the purchase price and the cost of ownership. If you rent construction equipment, you will most likely end up paying the transportation costs of the equipment to and from the rental store. Get in touch with Equipment North Inc for backhoe rentals. We provide backhoe loaders with integrated tool carriers and full cabs with A/C.
The fuel costs will remain the same for both owning and renting and will roughly be around one-third of your total expenses.
• Duration of the Project
If you have a short term project or require specialized equipment for a one time job, renting is a better option for you. If you do not use the machine for the entire rental period owing to hold ups in your project, you still have to pay the rent. If you are working on a long project or have several jobs that have to be completed, then you should buy equipment as rental costs can quickly add up in the long run.
• Fleet Management
Buying some or all of your equipment not only helps you save a lot of money in the long run but you can also schedule jobs according to your needs.
Equipment North Inc provides backhoe rentals to clients in Sudbury and Timmins. We offer an extensive range of products from various brands to ensure you find the equipment you need. We also offer excavator rentals and customize underground mining equipment for clients. Contact us today for more information on our services!