Buying vs Renting Plant Machinery
16th November, 2021
For a building contractor, equipment is one of the biggest investments. However, buying heavy plant machinery requires a huge capital outlay. The other option is to hire equipment, which would seem like the ideal choice, particularly when you are on a budget.
Depending on which option you choose, your equipment can either help improve your productivity or deplete cash quickly. Since every business owner prefers the former, we have put together this brief comparison to help you find the best route to acquire plant machinery for your business.Buying Plant Machinery
- Buying is the best option given the lower overall cost in the long run.
- You can buy the exact brand and model you want instead of accepting whatever the rental company has to offer.
- When you own the plant machinery, it’s available at all times, meaning you can access it whenever you want it.
- You can claim insurance, repairs, taxes, depreciation and interest from your taxes.
- You decide how the equipment is used, when you sell it and whether you want to trade it in.
- When you buy plant machinery, you pay the total amount upfront, which can affect the cash flow.
- You are stuck with the plant machinery whether or not your business is growing.
- You are responsible for maintaining, storing, repairing and transporting your plant machinery.
When Should You Buy
- Only if you have the capital available.
- You have access to a low-interest loan that makes purchasing viable.
- The plant machinery is critical to your operations and you will be using it regularly for a long time.
- You only pay for the machinery so long as you use it, which means you can add the rental cost to your job quote.
- It’s an excellent option when you want to test a machine you are looking to buy.
- You can return the machinery when the contract period concludes. Moreover, contract terms are usually flexible without any long-term lock-ins or penalties.
- Renting plant machinery minimises paperwork and administration.
- If the equipment breaks down, simply call the rental company and they will take care of repairs and replacement.
- Long-term rentals could prove costlier when compared to buying.
- The plant machinery you need might not be available when you need it.
- The equipment won’t be yours even if you’ve hired it for a long time.
Best Time to Rent
- When your financial options are limited.
- When you are looking for a specific machinery for a short period.
Contact MTS Plant Today
Get in touch with us today for more information on plant machinery and whether you should rent or buy.
Tel: 0808 231 7098