The general belief is that buying something is better than renting it. Sure, buying equipment has its benefits. But it is not always the best choice in all circumstances. If you, for any reasons, find yourself in the dilemma between buying and renting, you need to consider numerous things.
To help you in your decision, here are some of the reasons why renting is the better choice.
- Capital Utilization
Buying equipment is expensive. It requires large capital that is paid up front. Plus, it includes additional expenses as a result of ownership such as insurance, storage, energy, and maintenance. Renting, on the other hand, demands only a rental rate and energy costs. Your monthly expenses are more or less fixed and predictable. Renting gives you the power to budget more effectively and allows you to use your capital for other profitable ventures.
- Storage, Maintenance, and Other Costs
As mentioned, a lot of costs come with ownership. An owner needs to insure equipment, pay storage or warehousing fees, and ensure that equipment are well-maintained because it will cause your project down time when they are not. These are not the only costs of ownership. When you decide you no longer need equipment, disposing of it will require additional costs for you too. You have to ensure that it is conditioned for resale, pay for advertisements, and meet with potential buyers. In short, costs, costs, costs!
When you rent, you automatically eliminate these costs from your mind and pocket. These things are part of the rental agreement and are covered by the rental company. All that you have to worry about is the work that needs to be done.
- Short-term Use or Purpose
Renting is especially useful in short-term or one-time projects. When you buy equipment, it will only be useful for a specific task and useless for the others. There is no sense in investing on equipment that you will seldom use in the future. Through renting, you can choose the size and type of equipment suitable for the work you need to accomplish and easily return it once the term of lease expires.
- Up-to-date Technology
Normally, small businesses have no access to advance technology that costs a fortune to acquire. This only widens the edge of leading companies. But not anymore! Through renting, acquiring the most innovative and recent equipment is right at the end of your fingertips. You do not have to worry about your equipment being obsolete. From now on, that is the worry of your leasing company.
Is renting worth it? If you believe in maximizing profit and reducing costs, then it definitely is.
Written by Lindsey Rentals. Lindsey Rentals offers the best service and equipment rental in Columbia, MO.