Renting Vs Buying Construction Equipment | Which One Is Best For You?

Deciding whether to buy or rent construction equipment can be challenging for subcontractors and small businesses. On the surface renting can seem better than buying equipment directly from a supplier, as it is cheaper in the short term. The problem is that this isn’t always the case, and renting can sometimes end up being more expensive. Rental fees can add up very quickly, especially with heavy machinery. With that said the choice isn’t so simple, many aspects define what’s best for your business.

So to make the best-informed decision you can, take a quick little look through this article as we weigh the pros and cons of renting vs buying construction equipment.

Project needs

Does your company require a specific set of construction equipment? For example, you might run a landscaping service and require skid steers each day to get the bulk of the work done. The best choice in this scenario is to purchase the machinery. Although if you’re only going to use something very rarely like a cement truck for a one-off job, then renting might be a better option. 

In the end, it comes down to the job site needs, and what your business offers as a service. It would only make sense to purchase new equipment your company will use on a daily basis. As you’ll find out, deciding between renting or buying construction equipment has a lot more nuance than it first seems. 

Transportation

Some rental companies will offer a transportation service for you and others will charge for it, driving up the total cost. It all depends on what resources your company has. With rental rates on top of transportation costs, it sometimes makes more financial sense to purchase equipment.  

Making an informed decision is a matter of weighing your budget, and what kind of transport you already have available. Maybe in the short term, it will be cheaper, but with continual rental expenses, it’s only going to dig deeper into your budget. In this case, buying directly from a construction equipment supplier might be a good option. 

Maintenance

All equipment will need some kind of maintenance at some point. With continual use and time, wear and tear are only inevitable. This means that with equipment ownership comes the responsibility to keep on top of regular maintenance. For the most part, rental companies will cover maintenance, but this isn’t always the case. Some rely upon the renter to keep it maintained especially if the rental period is rather long. 

Maintenance costs should be a major factor in deciding what’s right for your business. If you own the equipment, it’s up to you to get it done. This doesn’t mean equipment suppliers don’t offer service packages, such as we do at Vermeer WA & NT.

Equipment availability

Maybe you don’t use this specific piece of equipment all the time, but when you need it, you’d prefer it to be ready to go. Perhaps some unforeseen aspect of a job comes up and you require some NDD work done with a vacuum truck immediately. Trying to suddenly rent equipment for a job can be a hustle and requires a lot of going back and forth with different suppliers. Whereas, if you have the equipment in your warehouse, so long as it’s maintained well, it will be ready to go at a moment’s notice.

Conclusion: Which is right for you?

Renting vs buying construction equipment mainly comes down to what your company needs. Initial costs may be cheaper with renting, but your company has to realise that this cost can build up if the equipment gets used a lot. Maintenance and transport need to also be considered. Do you transport it within your own business or do you get it delivered from an outside service? 

All of this means you’ll have to plan out your budget, and what your company needs. For equipment that gets used rarely, renting is a great option, saving you a lot of cost and time. Whereas, if it’s equipment that’s used regularly, or required at the drop of a hat, purchased equipment will be a lot more useful to your business. 

Looking to buy? Vermeer has you covered 

If you’re looking for the best construction equipment to purchase in Australia, Vermeer WA & NT has you covered. We’re a construction equipment supplier that prides itself in providing the best quality equipment, at great prices. Take a look at our range of products and services, we’re sure we have something for you. Get in touch with us through our website, by email: info@vermeer-want.com.au or phone: (08) 9479 4994.