Equipment ownership has an enticing allure to it, but let’s be honest, it isn’t always practical. Construction equipment purchases can be a daunting task. This is made so by the prohibiting costs that surround the whole acquisition process that includes taxes and licensing fees. Government policies may also make it harder to purchase heavy equipment. Recently, a new trend has emerged and is seemingly gaining popularity in the construction industry, equipment rental plans. This article aims to highlight the benefits that accrue from using rental equipment companies as opposed to owning one’s own heavy equipment.
A large percentage of contractors and construction companies have been cited as preferring to rent heavy equipment rather than owning it. The concept of having a piece of equipment when you need it and for a determined period without the need for long term financial commitment has made equipment ever so popular, now more than ever. There are several potential benefits of using rental equipment companies as discussed below:
- First and foremost, is the sheer difference between the amounts of money you would spend buying a piece of equipment versus the total sum you would invest in a rental plan. Buying heavy equipment is a ghastly affair in monetary terms. This is largely because construction equipment isn’t cheap. Second is the amount of money levied on heavy equipment in form of taxes, licensing fees and registration fees. These factors combined make it unrealistic to purchase a piece of equipment.
On the other hand, equipment rentals are a simple agreement that sees the renting party acquire a piece of equipment for a specified length of time at a specified periodic rate. The difference in the volume of money is immense.
- Machines being machines will from time to time encounter technical glitches or break down. In a typical construction site, a broken down piece of equipment means that the work has to stop. This translates to losses in monetary terms and time as well. The beauty of using rental equipment companies is that once a rented machine breaks down, an alternative is made available and the renting party resumes work.
The renting company incurs maintenance and repair costs and at zero fees to the renting party. This sort of arrangement highly favors the renting party minimizing emergency spending and overall ensuring more money stays in the renting party’s pocket.
- A common factor of consideration with most equipment is the depreciation value. Most mechanical contraptions depreciate in value over time. This means that a piece of equipment may not be worth its original value a short while after purchase. Heavy equipment owners feel the effects of this phenomenon.
On the other hand, equipment rental plans safeguard a renting party from this “Law of diminishing returns”. To the renting party, at the end of the rent agreement the equipment is worth what it originally was. Not a dime extra. It is worthwhile noting however that different equipment renting agreements offer varied terms. Ensure that your rental agreement excludes depreciation value fees.
- In a typical construction site, a variety of heavy equipment is used. From backhoes to trucks and bulldozers. An individual project has specific machinery needs that will vary from the next. When renting equipment, the purpose is that the machine rented will be utilized for a specific function. Once that task is complete a new one may arise demanding a different piece of equipment altogether.
Equipment renting is not limited to heavy equipment only. Vehicles, computers and furniture supplies also form an integral part of construction projects.
In conclusion, buying heavy equipment sure does sound attractive, the allure of a shiny new piece of equipment and all. However, most construction projects have a business aspect to them. The main idea being to spend less where possible while at the same time realizing objective completion. Equipment renting achieves just that. The equipment rental options has today continued to grow from strength to strength highlighting just how convenient these sort of arrangements are. Other than avoiding hefty tax cuts and other unnecessary costs renting machinery will put your mind at ease allowing you to focus on what really matters the most; your project.
Written by Lindsey Rentals. Lindsey Rentals offers the best equipment rentals in Columbia, MO.