Buying or Renting Construction Equipment, What’s the Best Option for You?
When determining if you should be buying or renting construction equipment, there are quite a few factors that should be considered to make the right call. For many, this decision will rest on budget alone but, regardless, you should understand the benefits of both options. Here are some factors to consider when buying or renting construction equipment with Synergy Equipment:
Determine Which Option is Better for Your Budget
While renting equipment is the least expensive option for one-off projects, companies that often complete similar projects may want to consider purchasing their construction equipment. Generally, if you do not use the equipment more than 60-70% of the time, renting is by far the better option. It is crucial to think ahead to future projects to understand how useful a piece of equipment may be to you in the long run.
The Benefits of Renting Construction Equipment
Renting construction equipment can also serve a wide variety of other great benefits to your company. If you will be in the market to purchase equipment down the road, it may be beneficial to rent different brands of the same equipment beforehand to get a gauge of what works best for your needs. You can try a variety of brands’ equipment on projects before making a decision to purchase one brand.
The Benefits of Buying New or Used Equipment
On the other hand, buying new or used construction equipment has its benefits as well. Upgrading your fleet with new equipment will enable you to reduce additional cost in the future, allowing you to bid on jobs more competitively. This competitive advantage can serve as a massive differentiator between your company and others competing for the same bid.
Tax Incentives for Each Option
When it comes to buying or renting construction equipment, there are quite a few tax incentives to consider. Renting your equipment will allow you to bill back the costs of that equipment to the customer or deduct the costs of the equipment from your taxes as a business expense. Buying new equipment will serve as a capital cost that cannot be deducted from your taxes in-full the same year that it was purchased. When deciding to sell part of your fleet, you will be able to earn some of this money back, but the equipment will always depreciate over time.
Synergy Equipment is Here for You
No matter which option for obtaining necessary equipment is best for your company, Synergy Equipment is here to help you make it simple. We offer a wide variety of new, used and rental construction equipment for all of your project needs. Our primary goal is to provide you with the right equipment and the knowledge you need to get the job done right.
From Doosan to Bobcat and Hitachi, we are supplying some of the biggest names in construction equipment. We offer 19 convenient locations across Florida, Georgia, Alabama and South Carolina to meet you quickly when you need it most. Are you still wondering whether you should be buying or renting construction equipment? Find more information on our blog today!
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