Buy or rent machinery? With the following tips, you will know what is the option best for your business to grow as much as you’d like.
First, ask yourself the following questions:
- Does your company have enough money to buy heavy machinery?
- How long will I occupy the equipment?
Advantages of buying heavy machinery
- The monthly payments are lower since you can have longer contracts according to your needs.
- The use that you give to the equipment, the circumstances and the time is free, unlike the lease
- You can maintain it according to your needs.
- If you want to sell your equipment, you will be the only beneficiary
Advantages of renting heavy equipment
- You can choose contracts that best suit you and only use the equipment for as long as you need for a project.
- If you own machinery, take into account that as time passes it wears out and the maintenance cost is higher.
- Even getting rid of obsolete machinery represents a high cost, so if you rent it, the lessors must do that job
- Helps you have more capital to meet your commitments
Here are a few tips:
- If the machinery will be used for more than seven years, your best decision is to buy it, because that will also help you to use the equipment as it suits you best.
- Verify that the supplier is trustworthy and offers you all the replacement guarantees in case the purchased machinery is defective.
- If you buy machinery, it is important that you have insurance and corresponding licenses, as well as the expense you will make on fuel, generally diesel.
Therefore, it is important that you take into account all these points to, above all, make your company strong, solid, and have enough money flow.