Renting Vs. Buying: 10 Reasons to Rent Equipment
American Rental Association | November 16, 2016

ara_4

You need bulldozing, digging or lift equipment for upcoming jobs. Should you buy or rent?

Many construction contractors already see the value of renting versus buying equipment. Recent research by the American Rental Association (ARA) found that 57 percent of contractors prefer renting certain types of machines and tools rather than purchasing them.

For companies that have not considered the rental option, there are many compelling reasons to rent equipment. Here are 10:

  1. Renting reduces capital expenses and enables you to allocate dollars to areas with the highest return on investment.
  1. Supplementing basic equipment with specific rental machinery only when needed is an effective way to extend your fleet and compete for more jobs.
  1. You don’t have to worry about a current model becoming obsolete or not having the latest safety features and Tier 4 emissions-compliant engines.
  1. Renting provides the convenience factor of on-site delivery — which saves you money and time.
  1. You can get exactly what you need rather than trying to “make do” with something else.
  1. The knowledge that the equipment is well maintained and ready to go.
  1. You avoid any depreciation issues and license and registration costs for equipment.
  1. The need for warehouse or storage space can be decreased or eliminated.
  1. Rental stores are stocked with the right equipment and attachments.
  1. You eliminate the costs and time associated with trying to sell or dispose of old or unused equipment.

When making the rent versus buy decision, contractors should consider the expected time utilization of the equipment. If it’s not something that will be used frequently or if it’s a specialty piece of equipment, then rental is the more cost-effective solution.

To help construction companies find equipment rental partners, ARA offers www.RentalHQ.com, an online rental store locator. Visitors can enter their ZIP code and the type of equipment required to obtain a list of local ARA-member rental companies that can assist with meeting their specific needs.