What are the Benefits of Renting Instead of Buying Heavy-Equipment?

Renting equipment has many advantages over buying, however, it may or may not be right for everyone. You should know and understand why it is important to consider this option. Making the decision on renting over purchasing can change and grow your business forever. This article describes the benefits of renting, especially heavy equipment, and why rental equipment may be vital to your business.  

Nov 22, 2021

This Article Includes

• Top 8 Reasons for Renting
• What are the Benefits of Renting Instead of Buying Heavy-Equipment?
• DAE Pumps – Going Above and Beyond

Top 8 Reasons for Renting

1. Use the Newest Technology
2. Try Before Buying
3. Time
4. The Cost of Maintenance
5. No Capital Expense
6. Equipment Depreciation and Taxes
7. Schedule More Projects
8. Create a Competitive Advantage

What are the Benefits of Renting Instead of Buying Heavy-Equipment?

Renting equipment for construction jobs has become a popular choice, with the market projected to grow 4.5% every year between now and 2027. Despite the convenience and cost-effectiveness of renting, it can still be tough to decide whether you should rent heavy equipment or buy.
Generally speaking, if you’re going to be using a piece of equipment for more than a year, it’s best to buy. On the other hand, if you think you’ll need it for less than 12 months, renting is often the better choice. Read on to learn the benefits of renting as opposed to buying your heavy equipment so you can decide the best course of action for you.

Use the Newest Technology

When you rent heavy equipment, you get to use the newest technology, giving you the ability to increase operational efficiency and get the job done faster. In contrast, when you purchase equipment, it can become out of date in just a year. Those features from a year or two ago have been surpassed by better technology and parts. This is especially true if budgetary constraints prevented you from buying brand-new units.
Quality equipment rental companies stock the latest-model tools and gear. This means instead of having to worry about whether the unit you rent is going to break down due to wear and tear, you can use it with confidence.

Time

Often what happens on projects is that last-minute scheduling leads to the project not starting on time. As individuals in companies work on projects, they prepare for the next project and forget to schedule the purchase of new equipment in a timely manner, or there happen to be manufacturing delays due to supply chain issues.

When renting, equipment is typically in stock and readily available. This allows access to a variety of equipment with a very short turnaround, getting equipment in days or hours.

The Cost of Maintenance

When you purchase equipment, the burden of maintaining it falls on your shoulders. With rented units, the rental company has the responsibility of maintaining them. Also, if there’s an issue, the rental company can handle the repair.

In addition to the time invested in fixing problematic equipment you purchase, you also have to shoulder the opportunity cost associated with the work that would have been accomplished had you not had to stop and make the repair. Renting is a great way to avoid these kinds of expenses.

No Capital Expense

When you buy equipment, you have an additional capital expense on your books. Often, the budget may not allow for this kind of major expenditure. Renting is a convenient way to avoid a red blotch on an otherwise well-balanced budget.

Purchasing equipment can also tie up funds for a few years, leaving you with little to no room for strategic investments you may have to make to maintain solvency. Rental expenses typically get categorized under operational expenses, so they don’t impact your capital expenditures.

Equipment Depreciation and Taxes

When you rent equipment, you incur a deductible expense, decreasing your tax burden. Purchased equipment is taxed at a depreciated rate over its lifetime. In some cases, the cost of purchased equipment can only be deducted one time — in the year it was bought.

Renting gives you more flexibility than buying. You get a tax deduction every time, and you don’t have to worry about complex issues like timing a purchase to coincide with a specific tax year or depreciation schedules.

Schedule More Projects

Renting allows you to bid and schedule multiple projects at the same time, enabling you to expand and grow your business. With access to more equipment at a lesser price than purchasing, renting allows you to increase projects, freeing up capital for more employees, resulting in more profits.

Create a Competitive Advantage

As your business grows, renting equipment to complete projects on time will help you gain a competitive advantage. On-time and on-budget projects earn a reputation as a dependable and quality business. Given the value of customer reviews and word-of-mouth advertising, the more jobs you secure and finish, the better your competitive advantage reputation will be in the industry.

Renting equipment gives you access to the newest technology, allows you flexibility when scheduling projects, lowers your cost of maintenance, reduces capital expenditures and taxes, and gives you a competitive advantage. The combination of these benefits gives you a stronger, more financially sound business — both of which boost your bottom line.

DAE Pumps – Going Above and Beyond!

DAE Pumps is a premium industrial slurry pumps and dredge equipment manufacturer. Offering unparalleled performance for many different industries, DAE Pumps are ideally suited for Oil & Gas, Mining, Construction, Marine, Municipal, Water & Wastewater, and many other industries. Along with the high-quality pumps DAE Pumps offers, we also provide world-class service to assist you no matter what the pumping challenge.

DAE Pumps Product Categories:

• Centrifugal Pumps
• Positive Displacement Pumps
• Submersible Pumps
• Self Priming Pumps
• Dredge Pumps

All pumps by DAE Pumps are made of the highest quality materials; they are durable, long lasting, and provide value beyond your expectations. No matter your industry, DAE Pumps has a pump specifically suited for your needs.