Knowing When to Buy vs. Rent Equipment

Whether you’re taking on a new contract or just evaluating your inventory, there are a few things to consider before buying or leasing equipment or tools. Use these tips to help you decide.

Cost

You’ll pay more money up-front to purchase a piece of equipment than to lease it. However, consider how much you’ll actually use the product. If you anticipate using it frequently, it might be more cost efficient to purchase the product instead of renting it multiple times.

Time

Consider how long your current contract will run and prepare for any delays. Say your rental is leased in 30-day increments, and you plan for a 30-day project. Even if your project runs one day overtime, you’ll double your budgeted cost and have extra equipment sitting around for 29 days.

Maintenance

Research the product to find out how much maintenance it requires. A high-maintenance tool could cost you more than it’s worth. Consider renting to avoid the hassle of upkeep.

Technology

How important is the latest technology to you? If a tool is re-released each year with improvements, it might make more sense to lease new tools than to purchase equipment that will soon be outdated.