Buying the construction tools could seem easy so you don’t have to keep running up and down when hiring, but renting construction companies could end up being the best option for you. Here are some of the determinants that will help you decide which way to go.
- Financial impact
When thinking about whether to buy or rent the construction machinery you should first identify if you are capable of buying the equipment because most of this machinery is expensive. If you or the company that requires the machinery is not capable of buying the machinery then renting becomes the next option. If you have enough capital to buy the equipment then you should consider the other factors to know if it is reasonable enough to purchase the machinery. Finances could be the major disappointment when making this decision since it is made depending on your capability.
- Equipment utilization
The another factor to consider when making this decision is whether the equipment is well utilized. This is done by calculating the frequency that the equipment is expected to be used monthly or weekly since there is no need of buying a machinery and storing it there without it doing any kind of job. If a machinery is used over 60% of the whole month then it is preferable to purchase one but if it is only used for 40% then hiring could be the best option for you to avoid incurring losses.
- Frequency of the job and the project
The size of the job is a major determinant since the job is only for a shorter period of time then it is better to rent since you will only need the equipment for a shorter period of time. If the project you are planning to undertake is long enough which could take a year or more it is better to buy the machinery yourself where it could be more expensive to hire.
- Handling of equipment
When you decide to buy the machinery you should have the knowledge on how the machinery is used so that you are able to maintain some of this machinery with no extra cost due to damage. If you are not fully aware then it is better to hire a construction company who are fully aware of what they are doing.
- Transportation costs
When you are planning to do some construction at a certain place you may require to transport some of these tools from where they are to the location of the construction. Therefore, if you choose to buy the equipment you should be ready to cater for the transportation cost but when you choose to rent the rental company is the one that will cater for its transportation cost depending on where they are located.
- Resources available
When you decide to buy the machinery you should have some of these resources like mechanics around to repair the vehicles and repairmen to work on the smaller tools. You should also have the money to cater for all those services. Most rental companies have these resources and tools to handle such problems with ease or could even be learned on how to repair the equipment themselves at no cost at all.
Most of this equipment depreciate after a period of time, therefore when thinking of buying some of this equipment it is important to be aware of the cost you may incur when the selling the tool. The machinery should, therefore, have earned a lot of profit that it will not be considered a loss once you decide to sell the equipment.
Written by Lindsey Rentals. Lindsey Rentals offers the best equipment rentals in Columbia, MO.