Heavy Equipment Rentals
Heavy equipment rentals, such as trenchers, excavators, tractors, and plate compactors are only used when there is a project that requires their type of specialty service.
Since they are not used in daily activities, it does not make any business sense to buy them and let them lie idle in the garage until there is a project where they are required (They are quite expensive). Renting is usually the best option in this case. Here are many more reasons why people rent them instead of buying them.
Lower the costs for a project.
If a company is undertaking a project, it is important to check on the costs and try to keep with the estimates. Renting the land movers helps lower project costs as opposed to buying new equipment and training operators to handle the equipment.
Renting is quite fast
The process of sourcing, accepting bids and going through due diligence before buying the specialty tools is a cumbersome and time-consuming activity. This may delay some important activities in the company. While the buying process can be done in advance for planned projects, immediate needs such as repairs and workshop extensions may not wait that long to be realized.
You get to use the best
The company may not have the budget for quality land moving equipment. Renting gives them access to the most recent technologies that will enhance their projects. Leasing firms always update their equipment as per the market needs. Quality equipment is also more efficient, easier to operate and fast in what it does. Rather than buy obsolete land movers, rent high quality ones.
Escape the cost of depreciation
The cost of depreciation will always be reflected in the balance sheet once you have bought a capital good such as the land movers. This means that the venture has to allocate funds to cater for the depreciation. Rental equipment has no such obligations except the one-time expense for hiring the equipment. Moreover, you escape the cost of storage and regular repair of the same.
When purchasing the land movers, it is good to seek reputable leasing firms, lease the correct equipment for the job, and compare different offers. You can get virtually any specialty equipment from rental services. Some leasing firms also help you get qualified operators for their equipment if they do not supply skilled labor.
If your core business does not involve regular use of land movers, consider going the easier and more affordable route, which is renting them when the need arises.