Benefits of renting heavy equipment
Dayton, Ohio – A common problem among growing companies is whether purchasing heavy equipment needed on the job really saves money or if renting is the wisest way to go. There is a lot of research out there on this topic, which can make the decision-making process that much harder for you. Ultimately it is your decision to make and the sooner you realize which direction to take, either to rent or to buy, the sooner you get the equipment that you need.
To help make the decision, Vandalia Rental, a company that specializes in rental equipment, parts, repairs and preventative maintenance, has prepared a list of benefits to support a case for renting equipment:
Manageable cost each month – You can budget for and manage your rental costs each month. It is difficult to know the “true” costs of ownership will be, which makes it hard to determine the actual cost of equipment for each job.
Immediate business expense deduction – The cost of your rental equipment is an immediate business expense deduction, whereas the cost for purchasing equipment must be expensed as depreciation over a length of time.
No maintenance fees – You do not have to staff and train your own mechanics, as well as allocate valuable space for service area when you rent.
Little to no downtime if equipment breaks down – Rental companies can typically be on site within hours to swap or repair equipment if it breaks down. You will be back up and running in a short period of time. There is no telling how long it would take to make the necessary repairs on equipment that you purchase because this depends on whether or not you have mechanics on call, can pick up/deliver your equipment for repair, or the time it takes to diagnose the problem, order parts.
No waiting for repair parts – Rental companies have a vested interest in stocking up on common repair parts, which allow them to make repairs with a rapid turnaround. No need to order and stock common repair parts or wait on supplier back orders. This also reduces overhead when compared to owning equipment.
Storage, lot size, warehousing – Storage becomes a factor when owning heavy duty equipment.
Can try out different brands – When you’re shopping for new equipment, comparing brands, or are simply interested in the newest equipment technology, renting equipment allows you to try it out first. If you are considering buying, this is a smart way to test drive before you buy.
Benefit from the ability to upgrade to new machinery – Vandalia Rental has historically carried an average fleet age of under three-ans-a-half years. With the latest equipment comes the newest technology. With new technology comes improved productivity as well as being more reliable. Newer, faster, better beats old, worn and obsolete. Also, newer equipment better complies with government regulations. When you purchase equipment you are in it for the long haul. Upgrading isn’t as easy when you have a hefty business loan to pay off!
Equipment disposal – No need to go through the hassle of selling, refurbishing, disposing and other costs of used equipment.
Capital and capacity to borrow – Renting tools and equipment frees up your capital for other uses. Rental equipment is not carried on your balance sheet, allowing for better line of credit.
Using the right equipment – Oftentimes contractors try to use the equipment they have versus the equipment they need to be productive. Renting the right equipment allows contractors to increase productivity and save time by being more efficient.
Emergency service when you need it – Does the rental company offer an outside sales team that can be reached 24/7 giving you options to keep your job moving along?
Allows seasonal business to be used as needed – You do not have to carry the inventory year-round for those items used only a couple weeks or months per year. Rental companies have the capacity to offer daily, weekly and monthly rental rates to best suit your business needs.
Can increase the volume of equipment needed for jobs with various demands – Rental companies, such as Vandalia Rental, offer a diverse fleet mix which is beneficial when you need to ramp up and increase productivity to meet your deadlines. Owning puts you at risk for a financial loss when your equipment sits idle.
Flexible invoicing terms – Customers appreciate being able to pay their invoice once they’ve been paid for the job. Ask the rental company about their terms. For instance, at Vandalia Rental, accounts are invoiced at the end of rental period or every 28 days. Accounts have 30 days to pay.
No environmental fees – Vandalia Rental does not charge any additional fees for shop rags, waste oil. like the typical rental companies do.
Optional damage waiver – Damage waiver is encouraged but optional with accompanying certificate of insurance.
No need for transportation equipment – How will the equipment be delivered to your job site? Would you need trucks, trailers, licenses, drivers or insurance? How will the arrangement affect down time and all other costs associated with equipment transportation?
Ideal for specialized projects – Vandalia Rental offers a diverse fleet mix to help carry you through projects that are not normally in your wheelhouse.
Renting equipment can offer peace of mind in knowing that equipment is well maintained which is one less thing on your plate. According to Kurt Barney, owner and president, of Vandalia Rental, “Most equipment is not used in-between jobs, weekend, holidays, or during maintenance and repairs. If you are not utilizing your equipment more than two thirds of the time, you’re usually better off renting.”
This article was prepared by Vandalia Rental, a equipment solutions provider based in Vandalia, OH. For more information, visit vandaliarental.com.