If your business requires a new crane, a winch, or a fork truck, you have two basic options to consider: whether to buy the machine required or to rent it. Both have its advantages and disadvantages. Read along to learn more about which option might suit your business the most:
Think about How Often the Machinery Would be Used
Some machines are used frequently by companies, while others machines are used only for one time jobs or jobs that occur only once or twice a year. If your business doesn’t plan on using the machine on a regular basis, then it’s easy to make the decision.Renting the equipment would be the most cost effective choice.
But if the machine is required on a regular basis, renting may become an overbearing cost for the company. In this scenario, consider purchasing the item to use on a regular basis. Some items, like fork trucks, are so regularly used by companies, it’s best to just look for forklifts for sale instead of renting options.
Consider Operational Costs
Machines don’t work by themselves just yet. Most machines require oversight and regular maintenance by human workers. When your company decides whether to buy or rent, taking operational costs into consideration is very important. If your business purchase the machine, then you would need to hire technicians and licensed operators. But if you rent, the rental may come with the technicians needed to operate the machine.
Smaller businesses on a limited budget may not be able to afford all operational costs of the industrial equipment. In addition to operating, the machine has to be stored on the long term too. It can be a hassle for larger items. Therefore, do take the financials into serious consideration before purchasing or renting the machine.
New Machines Come with Warranties
The biggest advantage of buying a newer machine is the warranty. Industrial machines from reliable sellers come with solid warranties lasting years. Some may even come with lifetime customer support. Some rentals do offer warranties as well, but the liability for the equipment is bigger than the guarantee for it.
If a machine will be considerably used, purchasing it new with a warranty may be the most cost effective option for your business. Additionally, new machines don’t require basic maintenance, like oiling, that might be a problem with rented machines.
Rentals May Require a Down Payment
Industrial equipment renters will certainly offer your business with terms of agreement for using the machine safely and responsibly. When the machine is in your hands, your business will have to bear any costs that might arise because of operational issues. Therefore, the renter may require a security in addition to the hiring fee.
Not all rentals offer charge an initial security, but some do. Such hassles don’t exist when you buy the machine right away.
Even if buying an industrial machine can be expensive, doing so may qualify your business for tax incentives, depending on the state you are headquartered at. Your business might be able to right off the expense and get a deduction, which is a major perk for companies on a budget.
The best choice will vary between companies. It all hinges on the unique need your business has for the machinery. In addition to that, don’t forget to consider extra fees it will cost to transport and operate the machine. When your company has though of all this, then it will be easier to choose the right option.