Businesses that produce or supply aggregate materials are essential to a variety of industries. These materials are used in both residential and commercial construction, road building and other civil projects, and in environmental protection.
A variety of machine types are used in aggregate production. These include conveyors, feeders, crushers, screens, and washer/classifiers. With your business or project, you decide whether to buy a piece of equipment or if it is better to rent instead. Here are some factors to consider when deciding whether to buy or rent equipment.
What is Your Current Business Financial Situation?
For most business owners, whether they have funds to buy a new or used piece of equipment, will be an easy question to answer. But, for a well-established or growing company, a little more thought may be needed.
- Will this be a one-time need or an ongoing necessity?
- Can I pay the total price for a piece of equipment or will I have to finance it?
- The cost of renting equipment will add up over time, but will I be able to make the monthly finance payments on a purchased piece of equipment?
- What will be my return on investment (ROI) if I buy my own equipment?
Considering these questions can help you decide which option will be the most cost-effective over the long-term for your situation.
Cost of Ownership vs the Cost of Renting
In the past, many manufacturers and distributors owned their own trucks to haul their goods. Many have found that it is more economical to hire a professional trucking company to do the hauling instead of purchasing and maintaining their own fleet.
The questions are similar when deciding whether to buy or rent equipment.
- Will the cost of renting be offset by the cost of storing and maintaining equipment? There are insurances and licensing to consider.
- Do you have a place to safely store the equipment you purchase?
- Do you have access to good mechanics to maintain it?
On a positive note, there are tax advantages of buying equipment. Your personal financial advisor can help you with that.
Length of Project and Job Frequency
The length of a project or the frequency of jobs may be your deciding factor in whether to rent or buy the needed equipment. If you are doing a short-term job, or you need a specialized piece of equipment for a one-time job, then renting may make more sense. If you are working on a long-term project, or if there are several jobs lined up, then buying may be the better option.
If you decide you need heavy equipment rental in Baltimore, then give ReAgg a call. By knowing the rental fee for your project(s), you can better answer the question whether to buy or rent. Call us at (301) 336-6700 or toll free at (888) 554-1503, servicing Baltimore and surrounding cities throughout Maryland, Northern Virginia and Washington, D.C. areas.