7 Reasons Why Its Better to Rent than Buy Equipment

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During my 11 years working in the rental industry, I have had many many people say they'd rather buy because its cheaper than renting. WRONG......and here's why.

  1. Maintenance - Equipment owned on a day-to-day basis includes full maintenance. The rental customer needs no repair shop, spare parts, mechanics, supply of inventory or maintenance records. Remember to add these costs into the cost of ownership when deciding to rent or buy.
  2. Breakdown - The cost of breakdown is not your problem when you rent equipment. It becomes the rental centre's problem in which they must find you a replacement at no cost to you. Time losses on breakdown  of owned equipment as well as cost of repair must be considered. 
  3. Warehousing - Warehousing facilities are seldom needed for rental equipment. This aspect has allowed contractors to operate successful construction businesses with little overhead and having rental centres serve as their warehouses. 
  4. Mobility - The main argument for owning equipment was the convenience and availability when you needed it. Now that argument is no longer applicable since rental centres are almost everywhere now.  For example, a contractor can bid on a job several hundred miles away knowing that he/she will be able to find the equipment they need at a rental centre near his jobsite. Also, the cost of moving equipment to a site across the country doesn't make financial sense due to high transportation costs. 
  5. Control of Inventory - Most often owned equipment does not get utilized as much as one would think. When you are renting equipment and an invoice comes to remind you every month, you're more apt to pay attention and only use equipment that you need. Owned equipment tends to be overlooked with less accountability for utilization. 
  6. The Right Equipment for the Job - It never fails....you buy a piece of equipment for a job and its perfect! The next job, its not quite what you thought you would need. So the equipment sits there and becomes obsolete. Rental centres have all kinds of equipment for different jobs. Only rent it when you need it!
  7. Getting Rid of Your Equipment - There comes a time when you need to get rid of your equipment. Doesn't sound like much of big deal, but it is! First you have prepare it for resale, then advertising it, showing it to potential buyers and if you're lucky, selling it in the timely manner. All these actions cost MONEY! Save your hard earned money by renting equipment.

Shelley Henschel, Marketing Manager
4-Way Equipment Rentals in Edmonton, Alberta

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