When you’re a construction company, you obviously have a dire need of heavy equipment, especially excavators. They are analogues to construction work and at the same time are most expensive. With such, the contractors are tempted to hire construction equipment rather than paying out hard cash for the ownership. The market is uncertain and there’re a lot of risks. In such situation, buying an excavator is costly. But you can avoid a major dent on your bank account by choosing to rent an excavator for your next project.
Renting an excavator is viable for you as a company when you’re looking to cut running costs and become more financially stable. You need an excavator only now and then which is an ideal condition for any equipment rentals.
Let’s now explore what are some advantages you can enjoy by renting an excavator:
No Initial Purchase Cost
One of perks for renting an excavator is that you don’t have to pay for the equipment when you’re not using it. The specific need of an excavator is for short duration and for that you can hire an excavator. After completing the job, you can return the machine to the rental agency and there’s no need to arrange a space for storage.
No Maintenance or Repair Costs
When you’re hiring an excavator, it is the rental agency that has to make provision for maintenance and repairs. But be sure to check the contract if the rental agency offers you this agreement. So, there’s no need to hire technicians and specialists.
Access to Latest Technology
Another pro is that you can go for the latest technology. Due to the competition in the market, the renter agencies are always looking to stay on top with new and innovative machines. So, you can get the latest brands and technology that is fuel-efficient and are best in the market.
Solve Equipment Storage Issues
It is without a doubt that excavators take up huge amount of space, and if you decide to buy one you need to arrange that space for storage. But you can save this capital by renting the machine instead of buying it.
Transportation and logistics
These costs associated with transportation and logistics can have a huge dent on your profits. If you’re working on one part of a country and you’re awarded with a project in another city; you have to spend a lot in shifting the machinery and logistics.
That’s where hiring or renting an excavator is a smart choice. You can hire from an agency that’s close to your construction site and then there’d be no waiting time or time lapse. This means you can save tons of money and invest it back to your business growth.
The Bottom Line
If you are a small construction company looking to take on bigger projects, or you are working on a project and looking to expedite the progress, hiring an excavator is often the best choice. You can save considerably while going this way for the short term, plus you can save labour hours to explore other business opportunities with the manpower saved.
Most companies prefer to hire excavators initially on a weekly or monthly basis if the requirements for an excavator is not permanent. However, when the type of work requiring an excavator becomes a full-time requirement, then it’s definitely worth the company considering to purchase an excavator outright.
For non-permanent usage, excavator hire is far more cost effective, however if you were hiring an excavator for more than one entire year, it makes better financial sense to purchase a new excavator directly. The costs of a new excavator purchase can be depreciated each year on the company’s tax obligations, plus there is the benefit of recovering around 50% or more of the initial purchase price when it’s time to sell or upgrade the machinery.