Nowadays, more and more construction companies choose to simply rent and hire heavy-duty types of machinery like tipper trucks, excavator, loader and roller, among others rather than having their own fleets. And they are right in so many reasons.
If you are new to this kind of business or planning to establish your own construction firm, you might also want to do the same. Indeed, there are several reasons why renting these types of machinery have become a more viable option rather than having a fleet of your own.
Here are the top five reasons why you should resort to renting out construction equipment and machinery instead of purchasing them:
As a start-up business, every resource count. Buying new or even used construction equipment is not a viable option when you have limited financial resources. Tying yourself up to a long-term acquisition deal could make it even worse.
To best allocate your financial resources, it is better to resort to renting these machines to avoid huge purchase costs. Not only will it saves you money, but you’re also not tied to any long-term payment obligations.
Hire Only What You Needs
Ever see lots of pieces of machinery rusting down in some huge parking space? This is a simple question that could have been answered easily – which machines are needed the most? Admit it or not, not all these machines are required every time. Some are often used, some are not.
For instance, you may need one excavator and a dozen tipper trucks in one project, but do not have the need for dozers and loader. Better allocation of resources also means having the right equipment available only when needed. The solution is simple: hire only the machines needed.
Less Space Needed
Having a fleet of machinery means you need to have spacious storage to park them whenever not in use. This simply translates to higher contract lease, which is another add-on to your logistics expenses. Resorting to leasing effectively eliminate such unnecessary costs to rent bigger spaces for storage and parking of your construction fleet.
Less Maintenance Cost
Another cost that you need to consider is maintenance. This includes allocating budget for overhead and spare parts among other expenses related to maintenance and repairs. By renting out required construction machines, you also effectively eliminate any additional cost related to maintenance and repair.
Yes, it’s the responsibility of the lessor to maintain their equipment and machines.
Depreciated Market Value
As time goes by, the machine’s value depreciates. Don’t expect to sell these pieces of machinery five or ten years after you purchase it and still get the same price. One of the biggest losses companies may incur thru the depreciated value of its assets.
Obviously, you won’t have to deal with such depreciation losses in the future when you decide to lease instead of acquiring construction equipment and pieces of machinery.
Savings, not more expense – this is what resorting to renting, and leasing can offer you. Indeed, these five reasons should be enough to convince you to join the increasing number of construction companies doing the same.
Suffice to say, not only save you tons of financial resources, but it also frees you from impending financial obligations and losses.