Buying Vs Renting Heavy Equipment

 

While obtaining construction equipment for a construction business, there are several factors that must be considered when it’s time to decide whether you need to buy, rent or lease.

The first thing to consider is how frequent an equipment will be utilized. You must look at your present workload and needs along with any and all probable future needs. If you have a requirement where the equipment must be used more than 60% of the time, it is best you opt for buying.

However, if you are planning on using it occasionally or for fewer projects, you might consider renting. Some additional factors to be taken into consideration are resale value, depreciation, working capital, maintenance and repairs, other associated costs, and equipment transportation.

Renting Construction Equipment

Renting equipment offers maximum flexibility. It allows you to pay just for the equipment you will be using for a certain period of time. This is often a boon to small scale companies, like subcontractors, who lack the resources to uphold an entire equipment fleet. Nevertheless, this does not mean that larger construction industries cannot benefit from renting.

Deciding to rent a heavy equipment means you do not have to make big down payments and a lot less money gets spent on the entire arrangement.

One major benefit of renting a used construction machine in India is that you can free yourself of repair and maintenance responsibilities.

When Must You Buy an Equipment?

The final option that you have is to purchase the construction equipment, which consists a higher upfront cost. Nevertheless, the purchase can be totally worth it if the company makes total use of the equipment on a daily basis. Several companies decide to finance their own construction equipment through down payment and easy monthly instalments until the entire amount gets paid off.

Ownership over an equipment has its own set of advantages, like asset value and tax benefits. While these facilities are important, the main question that companies must ask before buying an equipment is if they can get their money’s worth.

Some advantages of buying heavy equipment include:

  • It comes with zero usage restrictions
  • A new asset adds value to your company
  • It proves to be much more cost-effective in the long run

Large Indian construction companies might be able to purchase their own fleet. For mid-sized to smaller companies, a combination of rented and owned equipment can prove to be highly beneficial. Whether you are looking to limit your liability, buy the latest machinery on market or save money, our experts at GainwellCAT can help you make the right choice. Reach out to us today! https://www.gainwellindia.com/

Source Links:

https://theconstructor.org/construction/construction-equipment-buy-rent-lease/38763/

https://www.constructconnect.com/blog/construction-equipment-rent-buy-lease

https://www.smith-howard.com/construction-equipment-buy-vs-rent-vs-lease/

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