Benefits of Renting Equipment Vs. Buying

If you run one of the heavy-hitting businesses like automotive, retail, waste, or construction, you’ll need a heap of equipment to operate your establishment effectively. Thus, you must decide whether buying or renting the equipment is more beneficial. Here’s a breakdown of questions related to the two processes of obtaining equipment so that you can decide:

What Are the Benefits of Renting Versus Buying Equipment?

The main benefit of renting equipment instead of buying it is that you won’t have to make such a huge investment. You can rent the equipment for a month, week, or day based on the rental company’s policies. 

Your rental arrangement might also provide you with a maintenance or service plan instead of leaving you on your own to repair your equipment. Some maintenance plans are well worth having. 

Another perk of renting equipment is that you can get some tax breaks. There is a place to list your rental expenses for any equipment you use to operate your business. Hence, you could reap substantial tax breaks and possibly a refund if you use an amazing tax preparer.  

Furthermore, you won’t be locked into a long-term commitment if you choose to rent your equipment. Instead, you’ll have the option to return the equipment and rent an upgraded device with more valuable features. Renting is also an excellent way to test out a piece of equipment before you assume full ownership. You can test it out for a few months and then buy one of your own if you like how it boosts your business productivity. 

What Do You Need To Rent Equipment?

Typically, you’ll have to deal with fewer qualifications when you rent than when you seek to purchase equipment. For example, you will need to have excellent or good credit to buy equipment via financing. You may also need to show verifiable proof of your business profits and income statements. Rental requirements are not as strict, though you may still have to show the company some proof of income. 

Each rental company has different requirements, but all of them will want to see your identification. The one you choose might also request a deposit that will be given back to you when you return the equipment. 

Should I Buy or Rent My Equipment?

The choice is yours to make. You should rent if you want to get some hands-on experience with the equipment to decide if you want it. Renting is also a good idea for short-term projects and tax perks.

Additionally, you should look at renting if you’re a new business with no established credit or standing. Maybe you’re asking, "Is renting equipment smarter?" In those situations, it appears that it is. Buying is only the better option if you want to involve yourself in a long-term commitment because you’ll need the equipment for an extended period. 

Now you know some differences between renting and buying. Don’t hesitate to talk to your local equipment retailer to discuss your options for both. 

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