If your front loader needs to be replaced or if you're bidding on a job that requires equipment that you don't currently have, you're likely considering whether it makes more sense to purchase or to rent the new equipment. While there are many good reasons for purchasing the equipment you need, renting offers many advantages also, not the least of which is safeguarding your company's cash flow. Here are some of the benefits of renting versus buying heavy equipment
1. Safeguarding cash flow. One of the primary advantages to renting equipment over buying the same piece is that it requires much less of a financial outlay, thus safeguarding your cash reserves for other opportunities and challenges.
2. No maintenance, insurance and licensing expenses. Another major benefit to renting over purchasing equipment is that when you rent, the owner of the equipment is responsible for maintaining the license and insurance for the equipment as well as keeping it in good working order.
3. Easy transportation. When you own your equipment, you are responsible for getting that equipment to your building site. When you rent the equipment, the owner will deliver it where you need it and pick it up when you are finished using it. This can save you additional time and money.
4. Chance to try the equipment before you purchase. Another benefit of renting equipment versus purchasing it is that renting gives you the ability to see if a particular brand and model of heavy equipment is well-suited to your business before you spend the money to purchase it. There is much less risk in renting the piece of equipment for a week or so than there is in purchasing it outright. If the rented equipment doesn't suit your needs, you can exchange it for another and see if that's a better fit.
5. Ability to bid on wider range of construction jobs. Renting also gives your construction company to bid on a wider range of jobs, jobs that may require a large fleet of equipment, some of which you don't already own. By renting, you don't have to commit to owning the items you need until you win the bid, and you can trade in the equipment for a different piece for the next job.
While renting the heavy equipment you need for your construction project may not be the right choice for every company, doing so can help you to maintain a good cash flow; save you money on licensing, insurance and maintenance; save you time and energy on transporting equipment; allow you to test-drive a piece of equipment and even give you the ability to bid on a wider range of construction jobs.
For more information, talk with a construction rental company in your area, such as LAX Equipment Rental.
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