Heavy equipment rental machines for the construction industry today are designed to accommodate as much multi-tasking as can be effectively engineered. The hydraulic excavator is a good example. In its early forms, excavators were designed primarily to speed the task of ditch digging, excavating, and earthmoving excavation applications.
Today’s excavator rentals are utilized in a multitude of tasks ranging from demolition, heavy craning, mining, and aggregate applications to waste handling, forestry work, and river dredging. Modern excavators are built to accept a wide range of attachments like augers, jackhammers, concrete breakers and pincer-like grabbers, developed to complement the standard shovel bucket and allow excavators to take on a wide range of projects.
Excavators are a wise choice for virtually any type of business which depends upon heavy equipment since they are able to offer precise operation within a relatively small footprint. When you are considering an addition to your heavy construction equipment fleet there are essentially three choices to consider: buying, leasing or renting. Which one is best for your situation depends upon your individual business. The following are some factors to consider which can assist you in determining the appropriate choice.
Buying Creates Equity
The primary advantage of buying equipment comes after your business has repaid the purchase loan, and you own and have title to the machine. At this point it becomes an asset to your company. If you upgrade in the future, you can trade it in to reduce the cost of the next piece of equipment you buy. Equipment depreciation will reduce your tax obligation. The disadvantage in buying is that your upfront payments and those over the life of your loan will be higher because you are paying for the full value of the machine. You also incur responsibility for all maintenance and insurance costs.
Leasing Reduces Operating Costs
When leasing an excavator you still contract to make monthly payments for a set period of time, in a manner similar to making loan payments on a purchased machine. With a lease, you are only paying for the usage and depreciation of the machine, so your payments will be lower. Also, no down payment may be required, so leasing makes it easier to replace aging equipment with minimal capital outlay. In addition to offering reduced operating expenses, leasing helps structure a more orderly and realistic schedule for replacing equipment before wear-and-tear and maintenance costs become too expensive. When the lease expires, simply return the equipment to the finance company. Thus leasing is a more cost-effective way to keep your fleet stocked with relatively new machines.
Renting Allows Greater Flexibility
The primary advantage renting offers is cost-effective access to equipment you need to perform large scale construction work or jobs which may be outside your core competency. This allows your business to submit bids on projects you otherwise could not effectively compete on, and to expand your business base without a large capital outlay. It’s also a practical, low risk method to try a machine before you buy, and to take advantage of the latest technology without incurring costly depreciation.
Companies like Power Equipment Co. offer a variety of Colorado excavator rental options. Some construction equipment rental companies offer flexible leasing periods enabling one to rent an excavator for a day, week, or a month, and up to one year. The rental dealer as a rule will handle maintenance, which frees up your budget for other expenditures. Bear in mind that if you want to rent a machine for, say, three weeks, it might be more cost effective to rent it for a full month.
Renting Gives You More Options
Find and develop a good relationship with an experienced and reputable rental provider which offers ample stock. Doing so will give your business access to a wide array of complementary or support equipment. This can be very valuable if you are expanding your scope and breaking into new construction areas.
As a general rule of thumb, if the equipment you are contemplating is going to be used frequently, you’ll benefit by buying or leasing it. If it’s something you’re only going to need for a short time span or infrequently, it probably makes more sense to rent.