Construction companies must consider the choice of buying or renting construction equipment carefully before making a decision. Renting construction equipment rather than buying makes more sense in a variety of situations. Construction equipment rentals make sense if your business uses machinery occasionally, seasonally or as needed. Use these tips to determine whether buying equipment or renting it is the best choice.
Maintenance
Many contracts involving construction equipment rentals include provisions concerning maintenance. Things included are record keeping, repairs and spare parts that the rent equipment needs. This includes savings from having to buy spare or replacement parts as well as having to hire specially trained technicians to maintenance the equipment.
Storage Costs
No matter what equipment you have within your business, there will come a point in time when it will experience some down time when it is not needed. Keeping larger pieces of machinery in a large storage facility can add up quickly. Machinery that is simply stored and not being used can increase capital expenses for your business in a matter of months. Construction equipment rentals allow the business owner to use the equipment when necessary and not have to worry about storing it when not in use.
Most Up to Date Technology
Construction equipment rentals are a market that is quickly growing and extremely competitive. In order to gain a leading edge against competitors rental companies must provide the most up to date equipment available. These rentals not only offer the most recent technology available, but they also allow users to get the job done faster and as efficiently as possible. These rental pieces also eliminate the worry of complying with emission regulations and other state standards, because the rental company keeps up with these things.
Tax Deductions
Many costs associated with construction equipment rentals are tax deductible for businesses. Rental expenses can be deducted as a business expense to save the company money at the end of the year. Purchases typically have to be depreciated over the lifetime of the equipment before being deducted, but rental costs are immediately deducted at the end of each year.
Consider The Equipment
Consider how much your equipment will be used when deciding whether to purchase or rent construction equipment. A telescopic handler, otherwise known as a telehandler, is a machine which is most commonly used in industry and agriculture. The most common attachment for a tele-handler is a pallet fork with many businesses using it to move loads to and from places that a conventional forklift could not reach. If your business involves lots of movement of this type, then buying this type of equipment might be beneficial. If your company only does this type of movement once a year, then renting this type of equipment might prove to be more financially beneficial for your business. Consider how much the equipment will actually be used on a daily basis when deciding whether to buy or rent construction equipment.
By the year 2015 the global construction market is estimated to be around $145.5 billion dollars. This means lots of profit for construction companies, and even more profit for those renting construction equipment rather than buying it. Choose wisely and watch your business profit from choosing to rent construction equipment rather than lose business capital by buying equipment.
