Why hire equipment rather than just buying it? At some point, your business may need heavy machinery and you have to decide whether it is best to buy them outright or simply rent it from a heavy machinery rental company. Weighing the pros and cons of both options is a good place to start before you
decide. Here are some factors to consider :
Overall Cost Effectiveness
One of the most important factors to consider before making any purchase is your budget and the financial capacity of your business. When it comes to buying or Renting Heavy Machinery, quality and durability of the equipment are vital. Therefore, saving expenses by buying low-quality machinery can prove disastrous in the long run. When renting the machinery, not only do you get well-maintained equipment but it also requires minimal upfront investment. Also, depending on your business, you may only require the use of certain equipment for a short period of time so buying the equipment isn’t feasible.
Other than the initial capital required for purchasing the equipment, there are other expenses to consider. Overhead costs for frequent oil changes as well as the expense of storing and transporting the equipment will add up pretty quickly. If your service area is large enough, you may have projects across state lines or even in different countries. In this case, renting the equipment from a local company will prevent you from incurring immense transportation costs.
For long-term projects and frequent equipment use, the cost of buying the equipment is justifiable. But for short-term projects, renting the equipment is certainly the better alternative.
Lower Risk and Safety
The responsibility for proper maintenance of the Heavy Machinery lies with the rental company. And therefore it greatly lowers the risk for the contractor or customer. The rental company will be committed to keeping the equipment fleet updated, inspected and regularly serviced. Renting lowers risk and saves the time required for frequent inspections and maintenance. In addition to this, you can save extra costs for repairing or replacing equipment parts in case of possible mechanical failures.
Ownership cost for heavy machines also includes insurance policies. When buying heavy machinery, certain insurance policies are required that covers the risk of loss or damage to the equipment as well as the risks it poses to the users of the machinery. While renting the equipment you can avoid unnecessary expenses as you only have to worry about the rental payments for the machinery and the rental company will take care of the owner's insurance.
If you hire equipment from a supplier or rental company, then the cost of asset management and equipment maintenance lies with them. You don’t need to spend money on maintenance by cleaning and repairing the machinery and you also save on storage space since all this is handled by the rental company. In the case of rentals, everything is done off-site at no cost to you. And you can be sure that you’ll get a machine in excellent condition. Once the purpose of the machinery is over, simply return it to the supplier without worrying about ongoing upkeep.
By renting heavy machinery, you don’t need to worry about equipment disposal once it is no longer useful. Equipment disposal will be handled by the supplier. Additionally, with equipment rentals, you are saved the hassle of finding an auction center, costs and time. Another thing to consider is that the resale value of the equipment decreases with time.
Devaluation of Equipment
Buying your own equipment can be an investment. However, in the long run, the machinery starts losing its value. While opting for machinery rentals, you don’t have to worry about the devaluation of the machine after every use.
Other pros of renting the equipment include having access to several different types of machinery. You will always have access to the latest equipment as well as specialized equipment for certain tasks that you only require for short-term use. Compare the overall cost of buying the equipment vs. the overall cost of renting the equipment and consider the afore-mentioned factors before making your decision. Machinery planet is an online leading digital marketplace for rental and sale of heavy equipment in UAE. Contact us to avail instant services.