If your business works with construction, you deal with a lot of heavy equipment. If you want advice on how to save money on your equipment, you should check out my posts. I plan to write about everything from hiring versus buying, to troubleshooting to reduce repairs, to handling repairs yourself. I also plan to write about other aspects of heavy machinery use such as safety. I ultimately hope that my ideas guide you toward creating a leaner, more productive, more efficient, less expensive, and more profitable business. My ideas are geared toward everyone from newbies to experts in the field of construction.
Spring often inspires homeowners to do some deep cleaning or decluttering to help bring in warmer weather with a clean slate. But if your spring projects instead include earth-moving landscaping or excavating the basement for your custom home, you may be considering cutting costs by performing this work yourself with the use of some construction equipment. For those with the skills and proper certifications to efficiently operate a skid steer, front-end loader, or other piece of machinery, doing so can save thousands of dollars in labor costs while giving you direct control over the outcome of your project. Read on for some factors you'll want to consider when deciding whether to rent or purchase heavy equipment for your construction project.
When does purchasing make more financial sense?
The idea of purchasing a piece of heavy equipment you may not use (or be able to store) after your project is complete may not seem like a wise decision -- but in some cases, doing so could allow you to break even or potentially make a profit when you later resell the equipment. Depending upon the estimated length of your project and the level of impending construction in your area, you may find yourself entering a seller's market when it's time to turn this investment around. If your city is currently expanding at a rapid pace or has plans for future expansion or revitalization of a certain area (therefore needing to hire additional construction workers and purchase equipment), it's likely you'll be able to sell your used heavy construction equipment for sale for at least what you paid for it.
When should you seek out a rental instead?
Renting can often be the best decision for those who don't want to deal with the hassle of reselling a large and potentially hard to transport piece of machinery. Through this arrangement, you'll place a deposit with the equipment rental company and pay a daily or weekly rate until you return the equipment, at which time your deposit (or a portion of it) will be returned. You'll be required to pay for any fuel or oil the equipment consumes while in your possession, and you may also be required to replace any worn items (like tires or brakes) yourself. While an equipment rental isn't likely to let you break even on your construction costs, it's also a less risky proposition than purchasing and reselling equipment, especially if you're not sure you'd be able to sell quickly in your local market.
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