To rent or buy?
Industry experts agree that owning equipment is dependent on utilization.
- If the equipment is going to be used over 64% of the time — or 14 out of the 22 work days each month — then purchasing the equipment is cost-effective.
- With utilization between 60% and 40% ownership becomes risky. Remember the costs associated with ownership—repairs, maintenance, transportation, etc.
- Utilization of 40% and less — less than 70 hours of use each month — are undeniable rental candidates.
Thinking about purchasing? Have you considered the additional costs?
- Cost of Ownership. Owning Costs, Operating Costs, and Administrative Costs.
- Fleet Maintenance, Repairs, and Downtime.
- Financial Flexibility. No one can guarantee there will be enough work to make multiyear ownership profitable.
- Governmental Compliance.
Why renting works?
- You capitalize on the rental company’s buying power.
- Dependable equipment.
- You control your costs.