When deciding whether you should rent construction equipment or purchase used construction equipment, it is best to look at the bottom line more than anything else before you make your decision.
Make no mistake, renting can be a great decision if you only need the equipment for a one-time use, such as a project that you are unlikely to ever repeat – or at least, not any time soon. However, if you are going to need this type of machinery (whatever it is, be it a telehandler, boom lift or other piece of heavy construction equipment) often, renting may not be the most economical option.
Weighing the Price of Buying Used Construction Equipment vs Renting
There are different costs associated with buying used construction equipment and renting construction equipment. Rentals often only include the cost of the rental itself, plus any necessary insurance. This doesn’t sound like very much when compared to the cost of buying used equipment outright, which includes insurance and maintenance costs. But if you find yourself renting a piece of machinery rather often, the fees add up. Especially when you tack on repeated transportation costs.
In the time that you have been renting X piece of equipment, you could end up spending the same amount that it would cost to own a piece of used construction equipment! It’s astonishing how quickly rental costs add up, isn’t it?
The Value of Used Construction Equipment on Your Bottom Line
Brand-new construction equipment has a pretty steep depreciation rate, but after it has left the lot and become used most equipment will maintain a pretty solid value. This means that, should you ever find that you no longer need the machinery, you can sell it and get a sizeable portion of your expense back. This is simply not an option when renting equipment, because you will never end up owning it. Therefore, you’re out for the total cost of the rental – period.
Used construction equipment offers you a return on its value, as well as ample opportunities to grow your business. If it isn’t your interest to sell your equipment but rather to amass a fleet of construction equipment to tackle a multitude of jobs, you can get yourself set up with used construction equipment at a substantially lower cost than buying brand-new or renting.
So, Should I Buy Used Construction Equipment?
Nine times out of ten, buying used construction equipment is the best choice for construction contractors. Usually, you’re stuck throwing money away when you choose to rent instead of purchasing your own used equipment – there is no return on your investment. In fact, the amount that the rental takes from your project’s budget can be a pretty big hindrance.
Instead of throwing your money away, you should strongly consider purchasing used construction equipment. Whether you need it for the short or long-term, you can feel confident in knowing that the machinery will maintain its value and offer you a return on your hard-earned money.