When you start a business, you might think that you need to buy your transport equipment. This is not always the case and there are many businesses that find it easier to rent their equipment. It is important that you consider whether you should buy or rent your transport equipment from a company like Rentco before you make any major decisions on this.
Your Financial Situation
The primary determining factor when it comes to deciding to rent or buy equipment is your current financial situation. You have to consider if you have the capital to buy the transport equipment that you need. It is important to note that this equipment is expensive, particularly if you are looking to buy new.
Buying is a good option because you have a one off initial outlay for the equipment and then you own it. This large cost could be something that your business can afford and you should consider this. Renting is generally the solution people turn to when they do not have the initial capital, but it can be a larger burden. Over the rental period, the costs of the equipment could end up being more than simply buying the equipment.
When Do You Need The Equipment?
Another major deciding factor is how often you are going to need the equipment. The length of the project you have and the frequency of jobs will determine whether or not it is better to buy or rent. If you are looking at a short-term job, then buying your transport equipment might not be the best idea. The large financial outlay will not be viable for a short-term project, particularly those that require specialized transport equipment.
However, if you are looking at equipment for a long-term project or equipment that you use regularly, buying will often be a better option. The rental costs over a long-term project will add up and could end up costing more than the price of the equipment when you buy it. Additionally, if you are looking at multi-purpose equipment such as forklifts and excavators, buying would be the best option as they can be used in a variety of different projects.
Equipment Availability
One of the biggest advantages of buying your transport equipment is that it is available to you at any time. This means that you will be able to react quickly to changes in a project where different equipment will need to be used. You will also be able to take on jobs at short notice which is something that you could find tricky with rented equipment.
When you rent transport equipment, you run the risk of the rental company not having the equipment that you need when you need it. To overcome this, you will have to work with a number of different rental companies which could increase your overall costs. You will also have increased costs when looking at short notice rentals for the times when you need to take a job quickly or deal with changes to a job.