When you’re planning a new project, you’ll inevitably have to decide whether you should buy or rent equipment. Renting or buying equipment can make a major difference in your bottom line, as well as project management and operations. Sometimes it’s an easy decision—certain niche machinery that you rarely use is an easy check in the “rent it” category. Other times, you may struggle with the decision to rent or buy machinery.

Read on to discover the factors you should consider when making this decision.

Equipment rental benefits

Equipment rental can be a convenient and budget-friendly way to work with top-of-the-line equipment. Here are some common benefits:

• Get the exact equipment you need: When you rent equipment, you’ll always get the exact tool you need for the job. You won’t need to worry about using obsolete models or learning that your existing equipment is inadequate.
• No need to store rarely-used machinery: Most businesses have a finite amount of storage space. It makes little sense to buy equipment that you’ll only use once or twice per year. Save that storage space for the machinery you’ll use on a regular basis.
• Better cost control: It’s easier to factor in the cost of equipment when you rent it. Purchased equipment has to be paid for over time, and including those costs in a contract is a bit more nebulous. Rental costs can be written right into the budget.
• Well-maintained equipment: When you rent from a quality company, you’re guaranteed well-maintained equipment that meets all safety and performance standards.
• Reduced maintenance expenses: Furthermore, since you don’t have to maintain the equipment yourself, you can save time and money on maintenance tasks. That’s great news for busy or new business owners.
• Conserve capital: Finally, renting allows you to conserve capital now, so you can use it on purchases you’ll use on a more frequent basis.

Equipment purchase benefits

Of course, there are some times when it’s far better to buy your equipment rather than rent. The following are reasons to buy instead of rent:

• Frequent need and use: If you’re using a jackhammer or forklift on a daily basis, it simply doesn’t make sense to keep renting it. Anything you use frequently is a worthwhile investment.
• Potential tax incentives: Depending on the rest of your tax liability, there may be incentives for purchasing equipment. Some costs can be written off, which helps improve your bottom line.
• May have resale value: Although machinery can depreciate over time, it will still have resale value. Is resale value worth the extra maintenance and storage costs? That should be determined on a case-by-case basis.
• Financing available: Finally, most major equipment sales include financing. If you can’t (or don’t want to) pay cash in full, look for low interest rates that won’t outpace depreciation rates.

In many cases, equipment rental offers plenty of benefits. You’ll have to decide whether the costs of renting outweigh the benefits of less maintenance, no need for storage and other positives.

When you need equipment rental or sales, contact Central Equipment Company.