We know that construction comes with high overhead costs and that your business can face unexpected challenges. That means that reliable equipment is an absolute necessity. At United Construction & Forestry, we have you covered with reliable equipment–John Deere, Wirtgen Group, Morbark, and more. Now the question is, should you consider renting or buying?
Find Your Nearest United Construction & Forestry
Renting Construction Equipment
Pros
- Lower Upfront Cost: Renting equipment minimizes your upfront costs, freeing capital for other expenses.
- No Required Storage: Ample storage spaces is a necessity when purchasing large equipment. If you don’t have extra space, rental equipment is a quick and easy solution.
- Up-to-date Technology: Typically, rental equipment fleets feature newer equipment, giving you access to the latest technologies and efficiencies.
- Flexibility and Short-Term Use: Equipment rental is a great option for short-term and specific needs. You can rent specialized equipment, enabling you to win more jobs and increase your profit.
- No Depreciation: Depreciation of value is one of the biggest downsides to owning equipment – with rental equipment, you don’t need to worry about your equipment losing value over time.
- Reduced Liability and Insurance: The liability of equipment ownership can be a burden. With equipment rentals, liability and insurance costs will typically be lower.
Cons
- Higher Long-Term Cost: For longer-term use, frequent rental costs can actually outweigh the cost of equipment ownership. Take this into account when deciding whether to rent or buy.
- Potential Limited Availability: In seasons of high demand, equipment may be harder to access when needed.
- No Asset Ownership: As a business, your equipment fleet is a large part of your asset equity. In short, rental equipment will add no asset value to your operation.
- Paperwork: Each rental will involve paperwork, as well as availability and delivery coordination. This minor inconvenience can grow into a major one if you’re a frequent renter.
Buying Construction Equipment
Pros
- Long-Term Savings: If you’ll be frequently using your equipment, buying will offer long-term cost benefits.
- Availability: When you own equipment, there’s never a risk of availability issues – you can rest easy knowing that your equipment is there when you need it.
- Asset Ownership: The added equity of ownership adds value to your business.
- Customization and Familiarity: With owned equipment, you can customize it to best fit your needs and comforts. With rental equipment, you’ll deal with a learning curve on each new machine.
- Tax Benefits: In many cases, equipment ownership comes with tax deductions to help offset value depreciation.
Cons
- Higher Upfront Cost: Purchasing equipment will come with a higher initial cost, potentially straining your budget.
- Maintenance and Repair: As an owner, you’ll be responsible for maintenance and repairs that are not covered by warranty.
- Potential Depreciation: Your equipment will lose value over time, especially as its technology becomes outdated.
- Required Storage: Equipment ownership requires a significant amount of storage space. Safe and ideally weather-controlled storage is a necessity in maximizing the lifespan of your equipment.
- Less Flexibility: When you own equipment, you’re committing to that specific machine. Specialized needs may require further equipment rentals in the future.
So, What’s Best for You?
Renting offers flexibility and lower upfront costs. This makes renting ideal for shorter-term and project-based needs. Buying is the more economical choice for long-term and frequent needs, although it comes at the expense of maintenance costs and storage requirements.
Check Out Equipment Rentals at United Construction & Forestry
