Key Takeaways:
A tale as old as time. An age-old question. The perpetual back and forth happening across the globe on construction sites, in facilities, in your own backyard.
To rent or to buy?
Sounds strangely similar to Shakespeare and his famous, “To be or not to be” line, but this question hangs in the balance of facilities management more than good old William’s. The decision of renting versus buying affects maintenance and engineering managers regularly, as they decide what the most cost-effective strategy is to provide their front-line technicians with the crucial equipment needed to fulfill their projects.
Many managers today rely on the cost-effective and practical – and far less permanent – decision of renting. But what does the rental process entail? What are the benefits? And how do you know when it’s the right move to stop renting and purchase the equipment instead?
Let’s get into it.
Deciding whether to rent or buy equipment is not a simple flip of a coin. It has a direct impact on business acumens such as cash flow, maintenance responsibilities, training and the ability to properly care for and update equipment in the future.
Projects that require specialized or specifically tailored equipment have to consider not only their operational needs, but also their long-term financial goals.
Before deciding to rent or purchase a piece of equipment, consider questions such as how frequently will the equipment be used, how much time does it take to properly maintain it, what is the training like and do you have the personnel available, will you need more than one or accessories, etc.
Managers should complete a thorough and detailed evaluation of the scope of the project and your team before making a decision. This includes understanding height requirements, load capacity, terrain conditions, ventilation, power restraints, etc.
When you have those answers and a comprehensive understanding of the project at hand, selecting a knowledgeable rental provider can help ensure that your needs are properly met.
Renting offers numerous benefits for facilities managers that could make all the difference between cost-effectiveness and spinning your wheels (and spending a fortune).
If your project requires a specific piece of equipment, lacks adequate storage or space or faces shifting weather and seasonal demands, then renting might be the better option for you.
Renting equipment offers:
Renting equipment is ideal for businesses that need that flexibility without a long-term commitment, while buying is better for managers that are okay spending a little extra upfront for equipment that will be used more frequently.
While renting offers a host of benefits, purchasing equipment does too. Purchasing equipment gives you full control over your tools and greater customization options. This is great when you use specific types of machinery and have consistent workloads.
One of the biggest considerations when it comes to renting vs. buying, and the subsequent purchase decision, is cost. However, what may seem more expensive up front may be cheaper in the long run.
Managers should look beyond initial expenses and consider the total cost over the equipment’s lifespan, including things like maintenance needs, training, upgrades, etc. The total cost of ownership compared to the per-use basis tends to open the door to tax benefits that strengthen overall return on investment (ROI).
While maintenance costs and repairs are not included with purchases like they are with rentals, purchasing a machine allows you to have full control over the upkeep and lifecycle of the machine. That means, in-house repairs or by a trusted service partner are totally up to you and can extend the life of equipment with preventative strategies and customized service plans.
Also, extended warranties and service contracts can protect against unexpected repairs and safeguard your company's investment.
Buying equipment offers:
Aligning your purchases with long-term growth and a fully robust strategy can ensure that your investments support your objectives rather than just settling your immediate needs.
In the end, we circle back to that same question we started with: To be (rent) or not to be (buy). The decision behind renting or buying equipment goes beyond just cost and involves unique considerations like usage, maintenance, storage needs, seasonal changes and long-term strategic goals. It’s important to know what you want, what you need and what you can handle.
Alexis Sheprak is a freelance writer based in Royal Oak, Michigan.
Rent vs. Buy: What Strategy is Right for You?
