Renting Versus Buying

High taxes, maintenance, high depreciation costs and equipment insurance entailed by new machines are encouraging contractors and construction companies to shift towards construction equipment rental. But not having the right equipment at the right time can be costly.

So how do you calculate the benefits between buying or renting? The following 5 essential steps can help you make smart decisions to make sure you are not losing on productivity and profitability.

1. Be clear-sighted

Know the complete cost of owning equipment. When purchasing equipment or tools, numbers can add up quickly. Make sure you calculate the initial purchase price, taxes, the insurance and extended warranty, transportation and storage fees, maintenance records, rates of financing and risk due to inflation.

2. Be realistic

Project the real utilization. Needing it today does not mean needing it tomorrow. To calculate the utilization rate, divide the number of days the equipment is used over a specific period of time by the work days of this period. A low utilization rate can be good when thinking of reselling the equipment over a period of time, but it affects daily rentability considering the high initial costs. A high utilization rate means the depreciation of the equipment will be faster affecting the reselling value.

3. Be rational

Compare projected rental costs with initial purchase costs. It’s easy. Use our GAD calculator to evaluate the cost to rent the needed equipment. Project the amount of time you are planning on keeping the equipment, divided by the initial cost of this projected number. Compare the two costs to see which one is more profitable.

4. Be clever

Know the exception that proves the rule. Remember that manufacturer promotions or purchasing second-hand can be great options. Stay on the look out and remember that we are as good as the equipment we are using, that not having the right equipment at the right time is always costly, and that a daily usage is always a wise purchase.

5. Be proactive

Now, you should just try renting! We sincerely think that equipment rental is a secure way to achieve great results. Especially when our services provide machinery that will always be available, and always delivered on time. You won’t have to deal with equipment downtime and will avoid storage fees. We are reachable 24/7/365, and our GAD certification gives you access to North America’s largest equipment rental network.  

RentAll Construction is a true leader of the renting equipment industry. Operating North America’s largest equipment rental network, we offer contractors a seamless procurement strategy through our GAD-certified services. Yes, we rent equipment and tools but more importantly, we provide a solid reliability and time-saving opportunities to do more with your business. We allow contractors to get out n’ get it.