A lot of new business owners wonder if they should rent or buy their transport equipment. There are a number of pros and cons which come with buying and with renting that you need to know about. It is important that you weigh the reasons why you should rent against the reasons why you should buy to make an informed decision for your business.
Why You Should Rent Transport Equipment
If you have a business which works on one-off projects or short-term projects, renting transport equipment will be more cost effective. As you will not have any foreseeable need for the equipment, it would not make financial sense to pay the high upfront costs for the equipment. Renting the equipment for the time that you need it only will lower the overall costs that you face for the project.
The lower costs associated with renting transport equipment from a company such as Rentco for short periods of time will also translate into lower project costs. This can help you bid more competitively and help you secure more projects. This is something that all businesses have to consider as the more projects you have, the more money you are going to be making.
Renting transport equipment is also a fairly straightforward process. You will simply have to determine the equipment that you need and identify a rental supplier. You can then contact the rental company to determine the availability of the equipment and the rental rates before signing a rental contract.
Why You Should Buy Transport Equipment Outright
If you are going to be working on long-term projects, you need to look at buying your transport equipment outright. Most of the costs that are associated with this equipment will be a one-time cost which can easily be spread across a number of projects. This is something that you need to consider if you have a number of projects in your calendar that will require the same transport equipment.
It is also important to consider that the long-term costs of renting equipment will add up. The overall rental costs could end up being more than the price of buying the equipment outright. If you are going to be using the equipment for its entire lifespan, buying will be the best solution.
If you work on unique projects that often require special equipment, you will need to consider buying the equipment. This special equipment will be harder to source from rental companies as most will not have them. The rental costs will also be higher for these pieces of equipment which will make it more cost-effective to purchase it, particularly if you are going to be using them often.
Another reason why you should look at buying your transport equipment is the risk that the rental company will not have the equipment available. Unless you are working with a number of different rental companies, there is always a chance that you will not be able to get the equipment that you need. This will place your business at a disadvantage compared to your competitors who own their equipment.