…that is the question
When it comes to weighing up the pros and cons of buying or renting new plant equipment, it can be a big decision.
A decision which is often based on several factors as well as personal circumstances. For example, things such as budget, timescales, future projects, etc., all need to be taken into consideration.
In this post we want to look at both options in more detail and show why renting is often the better option all round.
Renting vs. Buying – the showdown
There’s a lot to be said about renting machinery rather than buying plant equipment outright.
The biggest contributing factor to this statement comes down to cost.
Renting plant equipment allows you to avoid upfront investments, costing you less in the short term, as well as benefiting your balance sheets in the long term.
This is because when renting, these costs will go within business expenses, but when buying, the costs will be placed under capital-equipment purchase.
The difference between these two is that for capital purchases you must plan ahead (at least a year and sometimes even a few years earlier). Working to these stricter timescales can restrict flexibility and also necessary construction work that may arise, as with no time for a proper analysis of costs weighted against long term advantages, in this instance renting is your best option.
Renting also allows you to not only get the right machinery but also to get the right tools. For example, not every job is the same, and in some instances, different attachments and plant equipment pieces will be needed. Rented options allow you to choose these pieces when and as you need them, for the length of time that you need them for. Compared to purchasing these outright, which can be a big expense if you only need them for a short period or a one-off project!
When it comes down to the condition of the equipment itself, there is no compromise. Renting allows you to pick the cream of the crop, the latest machinery at a fraction of the cost it would be if you chose to buy outright.
When looking to purchase plant machinery, the cost is a factor and, in some cases, budgets only stretch so far, so a compromise on purchasing older models is what is often found – increasing the risk of poorer quality and chances of things going wrong.
Which leads us on to the point of, renting requires no servicing or repair work.
When purchasing your own equipment, you are responsible for maintaining and servicing it regularly – which again can lead to additional costs.
Renting, you don’t have these problems.
Finally, when renting, you avoid depreciation of your property value.
When buying plant equipment what’s important to note is that yes, you now have this equipment all the time, but in terms of value, you will never get your investment back. Think of it like purchasing a new car. Driving that new car off the forecourt automatically makes the value plummet and you will never get that back – plant machinery and equipment is no different.
When thinking about purchasing plant equipment, you need to be in it for the long run. To take on all the expense, maintenance and service need that these pieces of machinery required.
Or, you can take the cost-effective and most flexible option of renting.
At Addplant, we have a range of machinery and plant equipment suitable for all needs. Call us today on 01482 867 227 or check out our ranges online to find out more.