Buy or Rent Heavy Equipment
We can’t seem to easily get a clear right or wrong answer to buy or rent heavy equipment.
That’s because the answer lies in identifying the type of task at hand for your construction project.
Here are the 5 most crucial factors to consider before deciding to buy or rent heavy equipment.
When to buy or rent heavy equipment
In the construction industry, a general rule of thumb is that if you don’t use heavy equipment more than 60 to 70 percent of the time, then you should consider renting.
But, consider the factors below.
1. Current & future project financial situation
Evaluate your company’s current financial situation. See if the capital that you have best suits you to buy or rent heavy equipment.
In fact, you should consider your situation and project costs months or years ahead. Then, you will be able to calculate the estimated cost that possibly takes on both options.
Projects by tender companies take years to complete, so they prefer buying heavy equipment because it costs a one-off payment once.
However, renting equipment may cost you more, especially if you need to use it longer than the renting period.
2. Cost of owning vs renting heavy equipment
a. Cost of owning heavy equipment
The cost of ownership includes maintenance and operating costs, insurance, and other fees such as government licensing. And, they vary according to the types of heavy equipment that you own.
b. Cost to rent heavy equipment
The heavy equipment rental cost is inclusive of the purchase price, cost of ownership, and sometimes transportation as well as fuel consumption.
These are some of the most important elements to consider before buying or renting any equipment. Also, consider being prepared for any unplanned maintenance or project costs too.
3. Length of project or job frequency
Considering construction project length and heavy equipment usage is crucial when it comes to deciding whether to buy or rent heavy equipment. If the project is within the rental period, a one-off job, or needing particular equipment, renting heavy equipment is a better option.
However, if the projects you tender are long-term, buying construction equipment is a smarter choice for you. Mainly because you can save more expenses for your emergency needs.
But, the ultimate option is purchasing or renting multi-purpose heavy machinery that you can use for a variety of projects.
4. Heavy equipment availability and usage
When you’re deciding to rent or own heavy machinery, consider its availability and utilization. If the machinery is constantly unavailable but you have a lot of project tenders, then you should purchase the equipment. It is a bigger advantage to own heavy machinery because companies can take on projects at a moment’s notice with less downtime.
Hence, it is essential for you to weigh the potential risk of the availability of the machine you need during urgent times. From a different perspective, it is a greater advantage to buy heavy equipment as it creates a good reputation for clients. They will see that your company is stable and trustworthy for business from the collection of equipment you own.
Just so you know, B & F Group outshines other typical construction companies in Malaysia despite renting out heavy equipment. We have several heavy machines available for rental while providing fast and efficient after-sales service and support.
Not to forget, our readily available spare parts to repair machines the soonest possible. Hence, the availability of equipment is no longer a worry when you have us.
5. Fleet Management and inventory control
If owning heavy equipment is one aspect to think of, managing is a whole different story that we are talking about. If you have skills and can afford to invest time to manage the machines, their insurance, and maintenance, then owning them will save you so much money.
However, if you are not as skillful or you lack management experience, then you might want to spend a little extra by opting for construction equipment rental. You need not worry about finding a space to store the equipment and maintain them at all times.
Other heavy equipment buying or renting alternatives
a. Buy well-maintained used heavy equipment
Typically, used equipment is maintained well with consistent maintenance. Hence, purchasing it at a cheaper price could be one of the best options.
b. Finance your purchases
Financing your equipment purchases can give your company some financial breathing room.
So, pick your expenses.
Is it better to rent or buy heavy equipment?
With the above top 5 most important things to consider, you will be able to evaluate the pros and cons that will bring to your financial status, hence, leading you to make the best decision for your business. There are more aspects that you can look out for to get a clearer idea of your decision-making process.
All in all, it all comes down to whether you can afford it but it is more important to partner with a reliable heavy equipment supplier. B&F Group offers the expertise that clients seek along with other services to fulfill your requirements.
On a side note, if you would like to know what B & F Group has in store for you with their heavy equipment rental in Malaysia, do drop by at our physical factory. B & F Group provides you with consultations that best suit your business needs. Get in touch with us today for your heavy machinery solutions.
