Do You Really Want to Buy that Scissor or Boom Lift? Why Renting is a Better Option
Buying Isn’t Always the Most Cost-Effective Option
The question about whether to buy or rent when it comes to heavy construction equipment has long been debated among industry professionals. Renting or buying is one of the most important financial decisions that construction companies have to make. After all, we are talking about a piece of equipment that may require an upfront investment of tens of thousands of dollars or more and a total cost of ownership that is significantly higher.
At BigRentz, we partner with equipment suppliers and customers across the country and Canada. We work with national brands that require specialty equipment from coast to coast, as well as small construction companies that simply don’t have the budget to buy. When it comes to digging a foundation, leveling a piece of property or hoisting a camera for the perfect aerial shot, the price certainly factors in the decision-making process, but from our experience, there are a variety of other things you should consider.
But in the end, renting wins out.
Here are six reasons why buying may not be your best option.
- Higher Up-Front Costs: As I said, buying is expensive. Regardless of whether you are a small construction company or a major motion picture studio, price matters. And this is the number one reason why companies rent. Buying a large piece of equipment requires a significantly higher up-front investment, and like a new car that is driven off the lot, the value of that equipment drops once it’s dropped off at your place of business.
- Maintenance: Things break, and they need to be fixed. You buy it, and not only are you responsible for fixing it, you are also paying for parts and the expert on staff to make the repairs and keep it running.
- Hauling: When it comes to construction equipment, most of it needs to be hauled to the job site. When you own that equipment, you are responsible for moving it from site to site, which means you need something bigger than it to move it. You are also responsible for any permits and specialty escorts required to move large equipment through city streets or on highways. Did I mention that hauling adds costs?
- Multiple Pieces of Equipment Required: If you are working on more than one job, you likely need more than one piece of equipment in more than one location. The length of a job, as well as distance from your headquarters, can have major implications on whether one piece of equipment is enough for you to serve your customers.
- Higher Insurance: When you buy a piece of equipment you are insuring it for the entire year and as long as you own it.
- Life of Equipment: Construction is hard work and the equipment can take a beating. In some cases, the equipment will age long before your investment is paid off.
When you rent your equipment, there is an obvious lower up-front cost. Maintenance and upkeep are the responsibility of the suppliers that not only keep parts for the equipment they own, they also keep the experts on staff to keep the machines running. The rental equipment supplier also takes care of any hauling, in many cases guaranteeing that the equipment will be at your jobsite at a specific time. The supplier is also responsible for retrieving the equipment when your job is completed, as well as any paperwork required as part of the drop-off and pick-up process.
Finally, if you are looking to grow your business, you need to be able to support multiple projects and customers. As a renter, you get to pick the suppliers that meet your needs. While some suppliers may have the newest tools, others may have the specialty equipment you need for a specific job. In addition, suppliers usually have access to more equipment, which means you can take on more projects to expand your business.
BigRentz has delivered thousands of pieces of equipment to customers for all kinds of projects. They know that when they rent through BigRentz, their lift, earthmover or crane will be delivered and picked-up on time, with the appropriate paperwork and supported by suppliers that maintain the equipment. They know they can leverage our network of suppliers to plan multiple jobs at the same time, and receive a consistent customer experience every time. Customers turn to us because they can trust us to do the heavy lifting, literally and figuratively.
Written and shared by Brian Weaver, VP of Sales, on LinkedIn: https://www.linkedin.com/pulse/do-you-really-want-buy-scissor-boom-lift-why-renting-better-weaver?trk=prof-post