The Benefits of Renting Construction Equipment and When It Makes More Sense to Buy
Deciding to rent or buy construction equipment can have long-term effects on a company. Overall, renting is less expensive and allows more fleet flexibility than buying. Also, rental companies provide training, customer service, maintenance, and equipment pickup and delivery services. They may provide rental protection plans, which helps further mitigate any risks with having the equipment on-site. However, there are times when buying equipment makes sense.
So, should I rent or buy construction equipment?
Construction Equipment & Tool Rentals
Equipment rental companies offer a myriad of equipment and tools for rent. They can range from pump rentals, pipe, frac tanks, and filtration units to light towers and instrumentation. You can even rent liquid handling equipment or an irrigation system. With as little as one day’s notice, equipment can be rented for a set time, such as a day, week, or month. The rental company delivers the equipment to the site and the better ones install it for operation. When the equipment is in use, the rental company takes care of all maintenance and repairs and can provide training for operators if needed. Once the job is completed and the equipment or tool isn’t needed anymore, the rental company picks it up and removes it from the site.
Why Rent Equipment?
There are many benefits to renting construction equipment instead of purchasing it. Most center on costs and ease of use.
Save on Equipment Ownership Expenses
When purchasing a piece of equipment, there is the cost of the initial purchase and ongoing expenses that come with using the equipment over time. These costs include taxes, loan interest, licensing fees, and storage costs. While you may be able to depreciate costs over time, you’re also responsible for maintenance and replacement costs.
A large capital expense can significantly reduce your working capital. By renting equipment, these large expenses are eliminated.n You just pay the rental fee each week or month. This lets you avoid the cost of buying equipment that sits idle for long periods. When the equipment isn’t being used, you won’t be paying for it.
Pay for the Equipment Only When It Is Needed
If you purchase a piece of equipment, it is yours forever. Costs continue to accumulate, whether it is being used or not. With a rental, the equipment can be brought on-site just before works starts and can be removed as soon as it is complete. You do not have to pay for equipment costs when the equipment isn’t in use, saving you money.
Industry Experts Help With Training and Equipment Selection
Not sure what size pump you need for your project? Rental companies have industry experts on staff that will help you determine what type and size of equipment are best for your project. They have the experience and know-how to help you make the right selection. If you need help training your workers on how to use the equipment properly, some companies offer training as well. This will ensure that the equipment is operated correctly and safely.
If There’s a Problem, the Rental Company Will Fix It
The rental company is responsible for routine maintenance and service on the construction equipment and tool rentals. If there is a problem with the equipment, you simply call them, and they will take care of it. If the repair will take a long time, they can provide a replacement, so you won’t have any downtime. You save money by not having to hire maintenance staff or train your employees on servicing the equipment you rent.
Rental Protection Plans Help Mitigate Risk
By purchasing a rental protection plan from the equipment rental company, you can protect yourself against additional risks in case of damage to the equipment from hazards, such as theft, fire, and vandalism. If you don’t have the proper business insurance to cover these damages, getting a rental protection plan can be a wise investment. This is especially true if you have a lot of rented equipment in use or your site is unsecured.
They Move and Store the Equipment for You
Wondering how you’re going to get that large pump moved to the next project? If you are renting it, the rental company will move it for you. They have the drivers, trucks, and trailers to haul anything they rent. Also, you don’t have to keep a piece of equipment on-site waiting for the next project. Have the rental company pick it up and deliver it to the new site when you are ready for it, even if it is months later. You save money by not having to pay for storage between jobs.
When to Buy Construction Equipment
Sometimes the best decision is to purchase a piece of equipment or a tool – even if it is expensive. When the tool is used often, is unique to your industry, or difficult to find when you need it, it may be best to buy. If it is necessary for you to do your work – and you would lose money if it was not available – you need to have it on hand whenever you need it.
How Do I Buy Construction Equipment?
If you decide that purchasing is the best option, then you will want to look into whether new or used equipment is best. Rental companies sell used equipment and you can also purchase equipment at auctions. Purchasing used equipment, instead of new, can save you up to 50% off the cost. You will want to look at the maintenance and service records, if possible, so you know the equipment was well maintained. Also, inspect the particular piece of equipment carefully and look for signs of repair or cracks.
Find the Equipment to Rent for Your Next Project
Rain for Rent is a leading provider of temporary liquid handling solutions including pump rentals, tanks, frac tanks, filtration, and spill containment. Projects range from flood relief to construction site dewatering, sewer bypasses, and industrial plant turnarounds. When you decide to rent construction equipment for your next project, Rain for Rent’s more than 65 locations in the U.S., Canada and Europe have the equipment and expertise you need for even the toughest jobs.