We all love our equipment and tools. The shiny Bobcat or the super sleek new forklift, they often look too good to be true. However, every investment comes with its share of market risks, and construction equipment is no different.
If you’re not a builder by profession, buying too many construction equipment to hoard space in your garage is not a good idea.
The easiest way to deal with these is by renting our equipment whenever we plan on building something. Renting has a lot of benefits that we often tend to underrate.
In this article, we’re going to discuss a few benefits of renting your construction equipment instead of making a purchase. Let’s begin!
No Trouble with Upfront Investment
If you plan on buying something for you, it’s always a massive investment. And construction equipment like excavators, forklifts, tractors is very expensive. So, you’d need some sort of financial backup to pay for them.
Even if you take loans and schemes to pay for these, you need to pay an amount of money as an upfront investment to have access to it.
However, if you rent it instead, you won’t have to worry about the investment because the rent is significantly cheaper than the price of equipment.
No Long-term Investment Hassle
In the case of most equipment, the payment isn’t only limited to the purchase of the product. The product needs a lot of maintenance, tinkering, servicing, etc. throughout its lifetime.
Also, if you take a product through an installment scheme, you have to pay monthly premiums along with fees and interests.
These costs can easily exceed the actual price of the equipment, thus resulting in more financial hassle for you. For this reason, we don’t recommend buying unless you’re confident about the financial implications of your purchase.
This is where renting is helpful, it greatly reduces the costs, and there’s no further investments or fees once the rent tenure is over.
Reduced Storage and Transport Costs
After making a purchase, the first thing that pops up in your mind is where will you keep the product? Construction equipment is mostly massive in size and require a lot of space, unlike household commodities or home vehicles.
So, you must arrange storage facilities for it before buying it. However, commercial storage can be expensive, and the renting costs are only getting higher. Therefore, think it through before making a purchase.
Also, you will require to transport your equipment at times, from storage to worksites, etc. And they aren’t likely to be free either. So, keep that in mind as well.
Always Get the Best Quality Equipment
The very moment you buy any equipment, you don’t have the option to upgrade it whenever an upgraded version pops up. Rather a lot of decisions are to be made before the specific purchase.
Regardless of how much you love the new Bobcat, you have to make do with what you have.
However, when it comes to renting, construction equipment rental companies have to keep all the best quality equipment in order to cater to their clients continually. So, if you’re willing to rent, you can get your hands on the new equipment without paying a lot less than you’d have to if you were buying.
No Repair Costs
Construction equipment is susceptible to damage. Many incidents at the construction site can put your products into a sticky situation, thus warranting a repair. Also, keeping your product unused for too long can have a toll on its parts.
And since you’re the owner, it’s on you to pay for the damage and get it repaired, which can often be very expensive even after having insurance.
However, when it comes to renting, you’re not legally bound to pay for repairs unless your negligence causes the damage.
Also, if the product ends up with a technical error during the tenure of your use, the company is liable for replacements and repairs. Thus, saving you from a lot of expenses.
Save Money During Taxes
When you own a product, you’re liable to pay everything involving it, even taxes. And in many parts of the world, taxes on construction equipment or high-end electronics as a whole is exceptionally high.
And since you’re not liable for the products you rent during your projects, you won’t have to pay a dime in taxes. However, you’re bound to pay taxes if your government has any specific rules regarding the taxation on rented products.
Allows the Scope of Pursuing Other Endeavours
If you rent your products, you can return them any time once you’re done using it. However, if you make the purchase, you have to deal with maintenance, repairs, taxation and legal affairs, and everything in-between.
And in all honesty, the costs, in that case, can be very stringent and often too much to bear. Also, since it’s a long term investment often involving loans, you can’t just change ships and get into a new business without dealing with it.
However, if you rented the product instead of making a purchase, you’re saving yourself from the burden of commitment, and you can make other investments if you feel like it. And for an entrepreneur, the freedom to expand into multiple branches of business is always a blessing.
No Trouble With the Resale of Products
What would you do once you’re done with your specific equipment? The most suitable option is to sell it for something better suited for your business. However, the market isn’t always steady, and product prices never remain constant over time.
As a result, you might not get the value you’re looking for when selling the equipment again. Also, finding clients for resale is just as troublesome. But with renting, the hassle of reselling is non-existent.
If you’re in a dilemma whether to buy or not, renting is always the better option. It also serves as a trial for your product, so you don’t end up paying more than you need.
The benefits of renting construction equipment, as mentioned in the passage, definitely weigh the benefits of buying. So, if you’re still indecisive about it, giving it a try before a purchase is always the smart move.