As a landscaping or construction contractor, your company will always receive work contracts that involve the use of an excavator. More often than not, you find yourself hiring equipment to do the job and there’s a lot that comes with it.
An excavator isn’t cheap and most construction companies limit themselves to just renting. But there are several instances where buying it would be more profitable than renting. Let’s review 4 reasons why this would be a sensible move to make.
When It Costs Less To Buy Than Rent In The Long run
Over time as you continue renting an excavator for your projects, the total spend accumulated overtime adds up to an amount that is equal to or even more than that of buying one.
Bear in mind that renting gives you limited access to the excavator as agreed upon on the contract with the rental company, after which you have to return it back and can’t claim any ownership rights. Purchasing an excavator will give you a return on your investment over time.
When renting, you pay for a new equipment which is rather costly. You can consider purchasing a used excavator that is well maintained at a subsidized cost. You can get financing to help you do this and keep your business running smoothly with your operating capital.
When The Project Length Is Too Long And Too Expensive To Rent
As a contractor, you may be working on long-term projects. Renting an excavator comes with an all-inclusive cost that the renting company puts in to make a profit. This rental fee will have within it the purchase price along with the ownership cost both marked up.
Added to this is the transportation cost and more importantly the fuel cost which makes up a third of the total expense.
Deciding to purchase will cut off these marked up costs that are capital intensive. Making a one time purchase minimizes the cost to a great extent especially when working on long-term projects.
The Availability And Ease Of Access To The Excavator
Owning your own excavator makes it readily available and easily accessible to you 24/7. You are able to stay in control. You can effectively handle any changes in a project as well as take on new contracts on short notice and have them done with minimal downtime.
You eliminate the risk of a rental company not having the excavator available when you need to rent it for a project. Potential clients who see you owning your own equipment are also more likely to trust you with their projects because you are more stable.
If You Have The Capacity To Manage An Excavator
If you are skilled enough and have the available resources to manage an excavator, it would be more efficient for you to buy than rent.
If you’re able to take care of insurance and licensing costs among other maintenance costs and have enough space to store it, and if you’re able to properly coordinate it in the event that someone rents it from, then buying one would be more sensible than renting.
You may also like to know about Scaffolding Rental.
If you find it more profitable to buy than rent an excavator, here are used excavators for sale. These deals are just too amazing to turn down.
David Johnson is a versatile content writer known for his ability to breathe life into words and create engaging narratives on diverse subjects. With a passion for effective storytelling and a keen eye for detail, David crafts content that resonates with readers and sparks their curiosity. He is dedicated to delivering high-quality, informative, and enjoyable content, making him a respected voice in the digital landscape. Beyond the keyboard, David enjoys exploring the outdoors, immersing himself in literature, and finding inspiration in everyday experiences.