We get it, it can be hard to ignore the lure of a brand new backhoe or a nice and shiny bulldozer, but the cost of heavy equipment is, well, rather heavy indeed. And the cost to maintain heavy equipment is just as draining to the pocketbook.
If you are a privileged and proud owner of a construction company, money is always a key consideration in whatever you do, this includes the decision to buy, or not to buy, heavy equipment. And while it might make sense to make some heavy equipment purchases, many times, heavy equipment leasing from Trimarc makes even more sense.
So before you dive in full force and start shopping for cranes, drill rigs and tractors, check out these excellent reasons to rent instead of buying.
Heavy equipment, just as computers and other electronics, benefit from ever-changing and improving technologies. This means that the dump truck manufactured just a few short years ago is in many ways already outdated.
And outdated technology isn’t just limited to vehicles, all heavy equipment will become outdated at some point.
So if you are thinking about sinking hundreds of thousands of dollars into a crane or a dump truck, consider how long you will own said equipment before it is outdated. Is that what you really want?
The rental market is pretty tough and rental companies are all too eager to offer the most up-to-date equipment. This means that in addition to saving money by leasing instead of buying, you have the latest technologies in place and can get jobs done faster and more efficiently.
Also, heavy equipment that is up-to-date is also compliant with emissions regulations.
This is one aspect of owning that business owners often overlook or don’t consider too important until it is too late.
While you may take your car in for an oil change and tire rotation when they are due, many commercial vehicles used in construction require a lot more than that. And if you think paying 30 bucks for an oil change is steep, wait until you have to change the oil in your construction rigs.
Think about it, you aren’t just going to drive that crane over to Jiffy Lube.
If your construction company is located in an area where winters are harsh and you shut down for the season, what will you do with all of the equipment that you own?
Since it is highly unlikely that you will store that dump truck and crane in your backyard, you will have to find a storage place with sufficient amount of space for your equipment. This comes at a high cost. And if you want your equipment stored in a sheltered area, that cost will be even higher.
Again, storing heavy equipment isn’t like getting a storage space for your lawnmower and patio set, it’s a lot more expensive and time-consuming.
If you do business nationally, you will have to figure out a way to get the heavy equipment that you own from point A to point B.
There are several options including trucking or using the railway, but whichever you choose, it is going to cost you a lot of money. Not only that, it is going to take some serious planning and probably just be one huge headache for you.
Forget about all of that and lease your heavy equipment instead. You will sleep better at night you know.
The construction sector is dynamic and there are several factors that can influence the market. You never know when things might slow down and when it does, money gets really tight.
It is during a period like this when you will be glad you lease equipment and don’t have a ton of money tied up in bank loans paying off purchases of heavy equipment. Leasing equipment helps cushion you from unpredictable financial downturns.
Just as the value of your brand new car depreciates the second you drive it off the dealership lot, the same holds true for heavy equipment.
If you own heavy equipment, you are the one who suffers the depreciation costs. Buying equipment, using equipment, maintaining equipment and reselling equipment requires a large investment on top of the initial purchase costs.
From time to time you may have short-term projects that require specific equipment. In cases like this, it doesn’t make any sense to buy something you will only use a few times. Renting gives you the flexibility required for the provisional time period that the equipment is needed. You pay for what you need when you need it and no longer.
As you can see, there are several advantages in heavy equipment leasing. For more information or to see how we can help, give us a call.