Knowing when to buy or rent heavy equipment can make a difference for your business. Will you use the machinery long-term and make a purchase financially valuable, or is it better to rent? Here are three tips for knowing when renting is a better option.
You Don't Have the Capital
When you don't have enough capital to buy, renting should be the option you look into. You need to not only look at your finances now, but also look at your finances several years from now. If you spend the money on machinery that needs to go into marketing or other aspects of your business, you may find yourself with machinery but no projects to use it on.
Renting can cost more in the long term, but if you're only using a machine for one project or for a short time, this is a worthwhile option.
You Don't Have a Long-Term Project
When a project may only last a month or two, buying equipment that you may never use again is a waste of your company's resources. You'll almost never get a full return on your investment if you have to sell it, because machinery also depreciates when it leaves the seller's lot.
If you need specialized equipment or know you're going to be using it for a short period of time and not have it sitting around waiting for its job to come up, renting is the best option.
You Don't Need to Have Equipment on Demand
One reason many businesses purchase their own equipment is because they need it to be ready at the word "go." If you know your project schedules won't change and that you aren't likely to have sudden projects crop up, renting may be a better option. You can rent the equipment you need immediately or designate the dates you'll want it, but you also don't need to keep it on your lot or spend a fortune on equipment that you won't need for a long period of time.
When you're considering buying versus renting, it makes sense to look at how you run your business. If you have no long-term need for equipment, a solid, unchanging schedule, and less money to invest, renting will be the best option. On the other hand, if you want to control your equipment and use it whenever you want, then you may want to invest in machinery for your long-term project goals.
For equipment rental, contact a company such as All-Star Equipment.
