Should I Buy or Rent Heavy Equipment?
Whether you’ve got substantial contracts coming down the pipeline, you’re expanding your company’s service area, or your current fleet just isn’t cutting it on job sites anymore, there are several occasions that may call professionals to invest in heavy asphalt equipment. However, that doesn’t mean buying outright is the only option — temporarily using what you need is an alternative at your disposal. So, how do you decide when to buy pieces of heavy equipment and when to rent?
Since there are pros and cons to each, it pays to evaluate your company’s current situation and capabilities and assess your long-term goals to determine which method of acquiring the equipment you need is most advantageous to your operations. The upfront cost is indeed a major influence in the decision-making process, but it’s far from the sole one. In fact, there are several things to consider when it’s time to gear up, including usage, availability, and more. Here’s what to bear in mind before buying or renting your asphalt equipment:
Current Financial Situation
This idea boils down to an essential question — are you prepared to spend the capital to invest in a purchase right now, or would renting be a wiser option? If you can afford the capital investment and cash flow is relatively ample, buying typically costs less than renting. Over a long period, a rental can end up costing you more, especially if the equipment is not being used for the entire rental period. However, renting can save you money in maintenance and repair costs.
Project Length and Job Frequency
If it’s a short-term job, renting probably makes the most sense. After all, you don’t want expensive equipment just sitting and not making you any money. Moreover, renting grants you the opportunity to harness the power of newer models and emerging technologies without the full price tag. But, it’s essential to consider just how often you’ll be completing these short-term projects. If you plan on taking on more work soon, the cost of ownership may be well worth the return on investment.
Equipment Availability
While renting from a reputable asphalt equipment dealer is a streamlined way to use what you need for a designated time, owning your equipment means having it available to you at a moment’s notice. This logistic benefit means you don’t run the risk of downtime or profit loss. Owning can be a big plus to clients who see it and know that you’re not only equipped to handle the job but are a stable and trustworthy business.
At Asphalt Care Equipment, we’re committed to helping you do what’s best for your business. We have asphalt equipment for sale as well as asphalt equipment rentals near Philadelphia, PA! For additional information about what investment options are optimal for you and your future projects, reach out to our experts today.