Should You Buy or Rent Plant Equipment?
13th May, 2016
The decision whether to buy or rent plant equipment is one that should be weighed carefully. Among the obvious considerations are capital investment, how long and how often the equipment will be needed, and the requirements of future projects.
Assessing Your Needs
Renting may seem attractive in comparison with the one-time purchase price of capital equipment. Rental, however, can add up, costing more in the long run if the piece of equipment will be needed over an extended period of time. If you will use the machine less than 60% to 70% of the time, renting could be the right option. If, however, it will be used significantly more and needed for future projects, purchasing could offer cost benefits both in the short term and in the long term when it can be resold.
It is considered best practice to purchase any equipment that is required for daily project maintenance, such as fork lifts, for example, where they are needed for ongoing loading and off-loading of materials.
In evaluating the cost of buying a piece of equipment versus renting it, it is important to include the cost of maintenance, insurance and other fees. Other considerations include transportation to and from both the project and rental sites and storage for purchased equipment.
One of the best things about owning a piece of equipment is that it will be available whenever it is needed. This means that you have greater control when project schedules change unexpectedly or an urgent job crops up. If you can handle key considerations including transportation, logistics, maintenance and storage, purchasing your own plant equipment will offer the benefits of flexibility and less downtime.
If you want to buy or rent plant equipment, renting will mean access to a wider range of MTS Plant Hire and Sales latest equipment, we can also handle some of the key logistics including maintenance and insurance.