Buying Vs. Renting Construction Equipment

On the job site, heavy equipment has given construction crews the ability to do in hours what would have taken days or weeks using manual labor. Businesses large and small depend on this equipment to show up to the site on time and function at peak capacity. That need means business owners will need to decide between renting or owning their equipment, and that’s not always an easy choice to make. There are several factors to consider and any given two businesses probably won’t have the same conclusion. Luckily for you, we’ve created a short guide to figuring out whether renting or owning is going to be best for your business. If you’re in need of some heavy equipment for your next job, stop by a Synergy Equipment location and talk to our team of knowledgeable equipment experts. We have locations across Florida in Daytona Beach, Fort Myers, Jacksonville, Miami, Orlando, Palatka, Pompano Beach, St. Augustine, and Tampa.

Capital & Risk Management

For the most part, the decision to rent or own is a financial one. The particulars of your business will decide which route is best. As you review your own finances, one thing to consider is the concept of capital and risk management. Buying a piece of construction equipment will often require a down payment. That down payment will obviously significantly reduce the amount of money you have on hand which could leave you exposed if other major expenses come up. It also means that you are taking on a portion of risk and if anything happens to your new backhoe or earth mover, you’ll be on the hook for it yourself. This risk can be a major factor for smaller businesses who are still trying to get off the ground and who lack stable finances.

All that being said, in the long term, ownership is often cheaper than renting. If you can take care of the maintenance and operating costs in-house, you’ll likely save money in the long term which makes it a smart financial decision.

Operating Costs & Maintenance

Another consideration when making a decision between renting and owning is operating costs and maintenance. When renting, you don’t have to worry about paying for oil changes, hydraulic line fixes, or new tires. You also don’t have to worry about down time in your operating schedule due to broken equipment because you can just rent another piece of equipment. Of course, if you own a larger business, you might already have the diesel mechanics and hydraulic technicians on staff who can maintain your equipment. If that’s the case, ownership will likely end up being much cheaper in the long run.

Equipment Availability

If your business depends on a specific piece of equipment, it might be best to work hard to buy the equipment for yourself. It’s much better to make sure you always have the equipment you need when you need it. Not only will it keep clients happy that the job is progressing on schedule, it will mean you can have more productive days in a month. Plus, if your local equipment rental location only has, for instance, one bulldozer for rental, you might be out of luck when another contractor rents the bulldozer for weeks on end.

Job Frequency & Location

Finally, you’ll need to think about how often you work jobs and where you work them. The more often you work a specific type of job that requires a specific piece of equipment, the more sense it makes to own instead of rent. This is especially true if you work in more remote locations. A construction company that tends to work away from major city centers might want to own their equipment so that they can reduce the amount of time wasted on ferrying equipment back and forth to the rental facility.

Hopefully this short guide brought you some clarity on the decision of whether to rent or buy your next piece of construction equipment. If you have further questions, come into a Synergy Equipment location. We’re Florida’s leader in heavy equipment and our locations are all across the state. Stop by one of our locations in Daytona Beach, Fort Myers, Jacksonville, Miami, Orlando, Palatka, Pompano Beach, St. Augustine, and Tampa.