Heavy equipment sales have expanded dramatically worldwide in recent years, as many in the business have remarked. Volvo just claimed a 27% growth in sales in 2018, while Caterpillar recorded a 20% increase in 2018. With all of this expansion, some in the construction and mining industries are wondering if they should cease renting and instead buy.

The quick answer is that it is debatable. Every business is unique, so the decision to purchase should be based on the specifics of your company’s current financial status as well as your brand’s long-term demands and objectives.

To aid in the decision-making process, we’ve produced a list of buying and renting advantages and disadvantages.

When is the best time to rent?

If you fulfill one or more of the following requirements, renting maybe your best option:

You don’t have enough storage space –

Large pieces of heavy machinery can be costly to store because they require a protected, dry space as well as anti-theft security measures. Renting a storage unit if you don’t have access to one may be a more cost-effective solution.

You don’t have enough technicians or delivery drivers

It’s vital to remember that the machine’s listed price isn’t the only cost associated with buying heavy machinery. Buyers must also factor in the expense of employing the appropriate experts and drivers to guarantee that the equipment is properly maintained, repaired, and delivered to and from the job site on time. When you rent, on the other hand, the rental company takes care of any necessary maintenance or repairs as part of the rental price, typically right on the project. Renting heavy equipment may be a preferable option if you don’t have the staff or resources to maintain and transport it.

You only need the equipment for a short length of time — Renting makes greater financial sense in most cases involving short-term 65 percent rule buying guide or one-time initiatives. Purchasing should only be done for long-term projects or if the equipment will be used for several jobs.

Your project needs a particular piece of equipment — when purchasing, you’re frequently obliged to choose a versatile machine that can be used for a range of tasks. When you rent, on the other hand, you have the flexibility to customize your options to ensure that you obtain the exact size you require. Surprisingly, renting in these situations can save you money since you aren’t forced to use a piece of larger equipment that uses more gasoline or electricity than is required; instead, you can select a machine that meets the exact needs of that specific job.

When is the best time to buy?

If you match one or more of the following conditions, buying maybe your best option:

You have the financial means to make a purchase —

To buy a piece of heavy machinery, you’ll need more than just money and a strong credit score. You’ll also need to make sure you have enough storage space and people on hand to keep the equipment in good working order and deliver it to your numerous job sites.

If you intend to use the equipment more than 65 percent of the time, follow this general rule of thumb: Buying is frequently the preferable option if you use a machine more than 65 percent of the time (or for eight or more months per year).

You demand adaptability —

Renting does not provide the same level of flexibility as owning a machine. When you own a machine, you can swiftly respond to changes in your construction timeline and simply adjust as project requirements alter.

A multipurpose machine is required ­- Multi-purpose tools, such as generators, rotary hammers, and drills, are excellent purchases. You might also want to invest in the machinery you use the most, such as wheel loaders or backhoes.

Renting vs. Buying: A Guide to Renting vs. Buying Heavy Equipment

Should you rent or purchase a home? In the end, the answer may not be as important as you believe. Many businesses have discovered that doing both works best for them. They buy the machines that are regularly used and multi-purpose, then rent the specialized and pricey devices.

Source: Blue Diamond