A while back, we discussed three reasons to rent construction equipment from Cowin.
While renting is definitely an option, it’s not the only option. You can also purchase brand-new construction equipment from some of the nation’s leading manufacturers.
Which one should you choose to outfit your company?
When You Should Buy
The answer really depends on your circumstances and goals, and depending on where you are, buying may be the preferred option.
Buying can be more expensive than renting. You are, after all, either purchasing the equipment outright – which means a significant capital outlay – or financing the equipment. Financing naturally incurs additional costs in the form of interest over a period of years.
However, if you use the equipment at or near peak capacity at a high level of constant use, it may be cost-effective in the long run to buy rather than rent. Renting, after all, is designed for temporary use, not permanent, long-term use.
Additionally, if you own equipment, you can deduct depreciation, insurance costs, taxes, interest, and repairs/maintenance. That helps lower the total cost of ownership come tax time.
When You Should Rent
You should rent construction equipment when you need equipment for a short period of time and a relatively-small amount of use during a particular project. If you need an excavator for a four-month project but don’t typically require an excavator throughout the year, for example, renting makes sense.
Renting spares you costs associated with storage and long-term maintenance. Rental terms are also very flexible – more so than leasing – and the administrative tasks associated with renting are fewer. You only have one invoice to pay, and that’s it.
Additionally, you can “upgrade” your fleet because rental companies typically update their inventories with the latest machinery.
Of course, renting isn’t cost-effective if you use the equipment often throughout the year. If you find yourself in need of a particular piece of equipment frequently, buying may be the better option.
Buy or Rent Construction Equipment with Cowin
Cowin has a plethora of options for buying or renting construction equipment, featuring the latest equipment and machinery from some of the industry’s leading manufacturers. Our equipment is ready to go and capable of any job, no matter if you buy or rent. It’ll be there when you need it.
Contact Cowin for more information on getting the construction equipment you need to get the job done.