Bettering Your Business Starts With Improving Your Operations

Nine benefits of renting and leasing equipment:

The rule of thumb for determining whether it’s cost effective to buy a machine is forecasting that it will be in operation at least 30 to 40% of the workweek. As every situation is unique, this rule is only a starting point for a cost-benefit analysis. Below are some additional factors to consider as you decide whether to rent, lease, or buy.

1. Rental equipment is up-to-date and well-maintained.
A common myth is that rental equipment is often out-of-date or poorly maintained. In fact, the opposite is true. Rental equipment is often used more consistently than privately-owned equipment so that machines reach the end of their life while they’re still cutting-edge. Also, rental companies are careful to protect their assets with timely inspections and maintenance that are often postponed by contractors managing a busy worksite.

2. You can try different machines to find your best fit.
Is the latest innovation really going to save you time and money? Specifications and reviews can’t tell you everything you want to know. What works well for one team may not be a good fit for another. Using the machine on the job for a few days or weeks allows you to see how it performs for you. The next time you rent, you can try another technology, model, or brand until you find the right investment for your business.

3. You can get the best machine for each particular job.
Rather than buying a versatile machine that performs okay at various tasks, renting allows you to utilize the best technology for each application. Avoid wasting fuel with a lift that is bigger than you need, wasting time fitting and removing attachments, and wasting energy maneuvering a clumsy machine when a dexterous one is available. Renting can help you keep your operation lean and efficient.

4. You can save money on storage and transportation.
Storing heavy equipment requires space and security, both of which are costly. Renting means you only have to think about the equipment when it’s on the jobsite, not when it’s taking up space needed for something else. Most rental companies offer pickup and delivery as well as transportation between worksites. When you move to a new site, you can rent from the closest company or branch, reducing the fuel and labor required to transport your equipment.

5. Renting and leasing frees your capital for other expenditures.
In addition to eliminating the worry of depreciation and the hassle of resale, leasing frees your capital for better investments. A down payment on machinery may not bring the greatest return on investment compared to other ways of utilizing your capital.

6. You can forget about maintenance, inspections, carbon monoxide testing, repairs, and insurance.
Equipment rentals always include the cost of maintenance and inspections, and lease contracts can include them as well, allowing you to forget about equipment upkeep and focus on delivering quality to your customers. A lease contract can also include the cost of breakdowns that were not caused by misuse.

7. Your expenses will be more predictable.
Outsourcing the liabilities of equipment ownership protects your bottom line. Even well-maintained equipment breaks down from time to time, but if you are renting your equipment or have a lease contract that includes maintenance and repairs, you will not have unexpected bills.

8. Renting and leasing keeps your enterprise flexible.
If you rent or lease your equipment, you can easily adapt to market forces because your capital is not locked up in your machinery. You will be financially free to try new things and comfortable using new equipment to match new opportunities.

9. Leasing saves money.
Of course the upfront cost of renting and leasing is less than purchasing your machinery outright, but even when you have a long term need for the equipment, it can be less expensive to lease than to buy. A fair market value lease often delivers the lowest total cost of ownership. At the end of the contract, you can turn in the machine or buy it for the fair cash value. In other words, you can have it both ways: the flexibility of renting and the benefits of ownership.