3 Ways That Heavy Construction Equipment Rental Services Save You Money
Heavy construction equipment is the backbone of every major construction company. As a result, most construction companies strive to access heavy construction equipment. However, there are two ways to go about accessing heavy construction equipment.
The two ways you can access heavy construction equipment include buying it or renting the equipment.
Most construction companies assume that renting the equipment is more expensive in the long run. Though there is some truth to the above statement, renting heavy construction equipment helps you save money in the long and short term.
Thus, if you own a construction company, here are three ways heavy construction equipment rentals save you money.
1. Fewer Upfront Costs
Most heavy construction equipment costs tens or hundreds of thousands of dollars. Few construction companies can afford to buy the equipment upfront. Hence, most construction companies use loans to purchase heavy construction equipment.
But borrowing hundreds of thousands of dollars comes with interest rates that eat away your business's profits. Thus, you lose money because of the interest rates.
Renting heavy construction equipment is quite affordable. In most cases, heavy construction equipment rents out at a minor fraction of its value. As a result, you don't need to take up hefty loans to finance heavy construction equipment rentals. Besides, you can rent several pieces of heavy construction equipment for less than the value of one.
Hence, a heavy construction equipment rental service enables you to save money by avoiding loans. Furthermore, it is easier to make back the money you spent on construction equipment rentals than to earn back the cost of buying the equipment.
2. No Maintenance or Repair Costs
After buying heavy construction equipment, you must service and repair it. Thus, owning heavy construction equipment leads to servicing and repair costs.
But, if you rent the equipment, servicing and repairing the equipment is not your responsibility. Repairing and servicing the equipment cost falls on the rental company.
Renting heavy construction equipment saves money by ridding your expenses of servicing and repair costs.
3. No Insurance Costs
Owning heavy construction equipment means you have to pay insurance premiums for the equipment. Insurance companies calculate the monthly premiums based on the value of the equipment. Hence, the insurance premiums amount to several thousands of dollars every month.
But if you rent heavy construction equipment, you are not responsible for insuring it. Thus, the heavy construction equipment rental company incurs the cost of insuring the equipment.
So, renting heavy construction equipment helps you save money by avoiding insurance premiums.