Industrial Equipment: Should You Rent Or Buy It?
Posted on: 3 July 2016
Whether you've just recently started a new business, or you've been in business for years, you may find it difficult to decide if renting or purchasing necessary equipment is the best option. There are situations in which renting would be easier and more cost-effective, but other situations might warrant purchasing equipment. Here is an overview of both options, to help you decide which choice would be best for you and your company:
How often will you use the piece of equipment?
This is a very important question when determining whether renting or buying is the best option. If you just accepted a one-time job that will require the use of an aerial scissor lift and you don't plan to use this particular piece of equipment in the future, then renting would probably be the smartest, most cost-effective option. However, if on the other hand you have scheduled numerous jobs in the future that will require the use of the same piece of equipment, then you might seriously want to consider purchasing the item.
What is your budget?
Before making a final decision regarding whether to rent or own, you need to resort to your business plan and budget. What would the cost renting vs buying be? Which solution would be more cost-effective in the long-term? You also need to determine whether you can comfortably afford to purchase the equipment, without causing your company to experience financial distress. If you believe that purchasing the needed equipment would cause too much of a financial blow, then perhaps renting on an as-needed basis would be the better option, at least until your finances more stable.
How long do you plan to keep the equipment, if rented?
The length of time that you plan to keep the equipment, should you decide that renting is the best option, is very important when it comes to making such a determination. Find out what the exact cost of renting the piece of equipment for whatever period of time you feel you will need it will be. Since rental prices have a tendency to quickly add up, if you need the item for an extended period of time, then purchasing it would likely be in your best interest. Even if you have to purchase a pre-owned piece of equipment to keep costs down, it could possibly be less expensive than renting in the long-run.
Running a business can sometimes be quite challenging, especially when it comes to making important financial decisions. When it comes to making decisions regarding major purchases, however, decision-making doesn't have to cause distress. As long as you take the time to carefully consider the decision and weigh the pros and cons, you should feel pretty confident that you will make the right choice. Check out the site to learn more
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