Should you rent your construction equipment? This is often one of the biggest questions companies ask when they're looking to move forward and expand their capabilities. Rental equipment is often a great choice for companies looking to save costs and improve their financial state.
If you're debating whether you should rent, you should know how you can cut costs with rental equipment and give your company the best chance to succeed financially.
Those looking into how to save costs with rental equipment should consider how renting helps you avoid extra expenses and high upfront costs. You also don't need to store or repair the equipment you rent. These factors and more make renting equipment one of the most cost-effective options for many companies looking to get control over their finances.
Read more about the top five ways you can cut costs with rental equipment below:
One way renting equipment can save money is that it doesn't require a company to spend money on down payments or make a long-term investment in owning the equipment. Equipment costs can vary, especially depending on the machine. Some companies might find it more budget-friendly to rent in the short term instead of investing a large amount of capital into machinery.
Rental equipment provides a much less expensive option, as you only have to pay a daily or a prorated monthly cost — without any major financial commitments. Rental equipment is especially useful for companies operating on a tight budget without the money to commit a great deal of capital to their fleet. Additionally, renting is a great cost-saving option when you only need a piece of rental equipment for a limited time and don't want to be paying it off years later.
A primary benefit of renting equipment is the lack of repair costs. Your company won't have to commit company time and money to conduct yearly maintenance checks beyond general inspections. When a piece of machinery breaks down in the field, you can rest easy knowing that it doesn't mean you'll have to pay for its repair.
The dealer that provides the equipment will be the party responsible for its general maintenance and any large repairs. As a result, you can plan out your costs more accurately, as you won't have any unexpected repairs or replacement parts to pay for. Without upkeep or repairs, you can expect to save a significant amount of money in the long run by choosing to rent.
Another way you can see financial returns from renting equipment is through your ability to take on a greater variety of jobs. With renting, there are no long-term commitments that keep you locked into a particular type of machine or piece of equipment. This lack of commitment means you can adjust to the needs of clients without having to invest a significant amount of capital into a new piece of machinery you need to complete a job.
Renting gives you fewer restrictions on the types of jobs you can accept, and as a result, it can help you improve your profitability and diversify your client base. For instance, you may be renting a backhoe loader and an excavator, but have a new client approach you with a job that requires a pipelayer. When you're renting, you can quickly add the pipelayer to your fleet and return any of the pieces of equipment you don't need to complete the client's request.
Renting equipment allows you to diversify your fleet at a moment's notice and take on any job — no matter how specialized. You simply get in contact with your equipment dealer and rent whatever machine you need for the time frame you require. Your money won't be tied up in long-term payments, making it easier to afford to rent whatever equipment you need. With this flexibility, you can raise profits by taking on a greater number of jobs.
In between jobs, construction equipment has to be stored. It can't sit out at a completed job site, taking up space and risking vandalism. When a company is experiencing downtime, they often have to rent out space to store equipment safely, thus raising their expenses.
Besides the costs of storing equipment, companies will usually have to invest in or rent vehicles that can transport the machines from one location to another. In addition to the extra fuel costs, any transportation-related expenses, like renting a truck to haul the equipment, can lead to increased costs.
Rental equipment dealers can solve both of these problems and keep your expenses low. Since you're only renting the equipment, you don't have to worry about paying for storage after you complete the job you needed it for. You'll simply return the equipment to the dealer. Additionally, many dealers will provide transportation for rental equipment, delivering it to work sites and picking it up when you're done. With transportation and storage taken care of, you can save a great deal of money.
Renting equipment makes it so you never have to worry about equipment depreciating and losing its value. These concerns are squarely in the hand of the rental company. Renting also means you don't have to worry about maintaining a piece of equipment to ensure it retains its value. Additionally, you won't have to worry about market changes that could lead to equipment losing its value faster or becoming obsolete.
Since depreciation and market changes can harm the value of your equipment, you may not want to invest a lot of capital into equipment that can't keep up with the newest demands. By renting equipment, you get access to the most updated machines without any long-term commitments. You don't have to worry about earning back your money reselling an old piece of equipment or a market change harming its value.
The Cat® Rental Store is the go-to equipment dealer for many companies in the construction industry for a good reason. We offer a huge selection of top-tier pieces of equipment at affordable rental prices. No matter the job, you can find a Cat machine that can handle it.