Benefits of Renting Construction Equipment as Opposed to Buying

  • Just a century ago, it was unimaginable that one could rent construction equipment, as only large builders had trucks, dozers, cranes, etc. However, as the construction market fully opened in recent decades, everyone has a chance to become a contractor.

    The best thing about this business enterprise is the fact they don’t need to own a single machine or a vehicle, they can simply rent them. When you think of it, there are at least 7 compelling reasons why renting construction equipment is better than buying it when you want to renovate your first house or starting a business

    A safe haven from fluctuations in the market

    Although there is money to be made in construction, the market is prone to major fluctuations. Everything from an increase in the average price of equipment, all the way to the cost of labor can make a dent in your budget.

    However, when renting equipment, you are shielding your business from one unpredictable factor: the price of equipment. Companies that like to buy, instead of leaving heavy machinery, might need an excavator at a time when they are the most expensive; turning the purchase into a loss in the long run.

    Not worrying about the logistics

    Moving from one build to another is a real hassle and it knocks out thousands of dollars from your pockets. If you are smart enough to rent equipment, then you won’t have to worry about the logical aspect of moving it to the new project site.

    Furthermore, ordering new machines, and then waiting for them to be delivered can turn into a real hassle. When the new tipper truck or forklift finally arrives, you first have to test its operational abilities, while a second-hand piece of equipment is ready for construction from day one.

    Storage issues resolved!

    Do you find it hard to properly store every single piece of clothing you have in your home? If your answer is “yes,” then you can only imagine how hard and expensive it is to find storage space for machinery weighing several tons and tens of meters in diameter.

    When equipment is not used, it needs a large, fenced-off lot with a security guard and 24/7 video surveillance. All of these security measures cost a lot, eating away at the construction company’s thin profit margin.

    On the other side, contractors who rent equipment don’t have to worry about long-term storage. The renting company has its own warehouse where the equipment is stored far away from the elements outside so the bulldozer, for example, won’t have any rusty parts.

    Not worrying about spare parts

    Every piece of equipment in the construction industry comes with spare parts. Not only do you have to store these but you need to get extra ones when something gets broken. Again, you need storage space inside a warehouse, and skilled mechanics to make the replacement, increasing the total operational cost of each machine.

    However, renting equipment instead of buying it means that you won’t need to know how different spare parts look like. For instance, short term or long term forklift rental includes fully operational forklifts which have been technically inspected before they were leased to you. If there were any faulty parts on these forklifts, you can be certain they were professionally replaced.

    You won’t need to hire professional mechanics

    Many contractors would argue that it isn’t the same using borrowed equipment and using the machines you own yourself. Yes, this is true but this is not an upside of ownership but rather a downside. Namely, when a machine or a vehicle you own starts to malfunction, it is entirely up to you to diagnose the malfunction and repair it.

    On the other side, if a rental breaks down, repairing it is not your reasonability (presuming you have utilized it as stipulated in the contract with the rentee). They will bring their own mechanics to take a look at it and fix it as fast as possible. If the piece of machinery is beyond repair, then they will provide you with a substitute to get the job done.

    When renting, you will need to hire professional mechanics only for the equipment you own yourself. If you have decided to rent out every single piece of machinery you use in construction, then you won’t have to waste money on mechanics’ salaries.

    It’s cheaper from the start

    Commercial bank loans are widely available nowadays but that doesn’t mean that you can avoid the initial cost of purchasing construction equipment. In fact, buying a bulldozer or a road roller on credit will only increase the already astronomical price of these vehicles.

    Renting a heavy piece of equipment means that you are avoiding this sky-high initial cost. It’s the rental company’s problem with how they will make construction equipment profitable, not yours. When renting equipment, you won’t be trapping hundreds of thousands of dollars in new machine purchases.

    Avoiding depreciation

    If you buy a new car, its price will start dropping as soon as you take it onto the road for the first time. This is called depreciation and it only speeds up as years go by. After a single sear, a dozer’s value can easily be cut in half when sold as used.

    Reselling equipment is not something you need to worry about hen renting. Again, this is the rental’s problem, as they are obliged to provide you with a safe and working piece of construction equipment, regardless of age.

    We hope that by now you have a better understanding of why it is wiser to rent, as opposed to buying construction equipment. Not only is renting cheaper in the long run but you’d be avoiding countless logistical snares involving equipment transport.