When buying assets for your company, you need to think about the investment that you lay on the table. See it as an asset, use it carefully, and you will reap the fruits of having it in your firm.
In regards to this topic, many CEOs have differing opinions as to whether or not you should buy or rent heavy machinery. When I mention the word “heavy machinery,” I mean caterpillars, excavators, and the likes. However, both aspects (buying and renting) have their pros and cons.
Our article sets to answer this question. We provide three benefits and limitations on why you should buy heavy equipment. Note that all factors depend on the business situation.
What are the pros?
1. It is one-time investment
If you have a long-term project, then you should consider buying yours. The benefit of having your equipment is that it comes as a one-time investment.
On the other hand, renting can have a significant impact on the budget since the renting company expects that you pay on the “time-used” basis.
Additionally, if your business depends on the equipment, then it would save you a lot of trouble if you could buy them.
2. Safety in the field
When you buy the machinery, the chances are that you will have to hire personnel to operate, service, and upgrade them.
As soon as you find people who are experts with them, you are sure that problems such as frequent accidents that arise from a lack of technical knowledge will decrease.
You will also have a service and upgrading plan, which means that you can finish any project within a short time since the machine is at your disposal.
3. You save time
The problem with renting equipment is that it delays a project. You may have to push it a little further until you find a company that could rent out theirs.
However, when you have the equipment in your premises, it is easy to access them, which means that you complete your tasks within a short time.
Besides that, you save time on jobs. As in, see equipment as an addition to the current collection of machinery in your warehouse.
What are the cons?
1. You eliminate the problem of maintenance
Once you buy new equipment, you have to create space to store them. Most companies, especially startups, may lack the appropriate amount or budget to purchase such facilities.
Because, the truth is, you will not leave the equipment outside. Adverse weather conditions could cause damage to various parts of the machinery.
Rentals leave the work of maintenance to the renting company and not you.
2. You get the best in the market
Technology is never stagnant. Every single day a new invention comes into the market; alternatively, the old machines get upgrades.
Once you buy equipment, it might take some time before you bring in new ones, which in that case, causes you to use old machines.
Nonetheless, when you scan through the market, you can get a good offer from the best modern machineries that your project demands.
3. No depreciation costs
It is so obvious that your equipment keeps getting old as you continue using it. From a business perspective, you know what that means.
The machinery decreases in value, which is also makes it difficult when you are trying to sell it.
Once you decide to rent equipment, you do not have to experience that issue anymore.
Make sure that you make an informed decision when choosing whether to buy or rent. For the leases, examine the various mini excavator rentals near me. You should review the renting companies to understand their cost and the type of machinery they have.