Heavy Equipment—Should You Rent or Buy?

When you need heavy equipment for a project, your first major decision should be whether you want to rent or buy. Both approaches offer their merits and the right option for your company depends on a variety of factors, such as your budget and how long you'll need the heavy equipment for. Below we cover the perks of renting versus buying heavy equipment. If you want more information or want to check out your heavy equipment options, head over to Magnum Power, located in Lawson, Missouri. We also proudly serve those in Clay County and Kansas City, Missouri.

The Advantages of Buying

1. Full Control

When you buy heavy equipment, you get full ownership and control of the equipment. No need to stress about incurring a small ding or scratch that the rental company will bill you over. No need to stress about exceeding the mileage limit and paying a fee. Instead, use the heavy equipment however you want since you own it.

2. Flexibility

Another benefit of heavy equipment ownership is that you are not tied to that specific model. If you end up realizing the equipment you purchased is not the best fit, you can always sell it and buy a model that better suits your needs. When you rent heavy equipment, you are stuck with that model until your lease runs out. 

3. Increase Your Equity

Buying heavy equipment helps increase your equity. If you choose to later sell the heavy equipment, you can recoup a large amount of your initial payment. Or you can use the heavy equipment ownership to help boost your company's worth. This equity can be reinvested into your company and help it grow.

4. Long-Term Savings

If you plan on using that specific heavy equipment for a long period of time or on multiple projects, you can save money by purchasing the model. Rental fees are cost-effective for quick, short-term projects. But the more often you use heavy equipment, the more you'll benefit from purchasing the model rather than renting it.

The Advantages of Renting

1. Smaller Upfront Cost

It costs less money upfront to rent heavy equipment. You'll enjoy lower monthly payments, which helps save your company liquid capital. If your company has a strict budget, renting can be a more feasible option.

2. Latest Technology and Features

When you rent heavy equipment, you can often get a model that is only a year or two old. Enjoy the latest and greatest upgrades and features, which can include improved fuel efficiency, better safety features, or optimized performance to get your work done faster.

3. Fewer Administrative Tasks

Heavy equipment ownership involves plenty of logistical tasks such as tag and license renewal. When you rent heavy equipment, your company's name won't be on the title, registration, or property taxes. You can spend your time and energy focused on the work at hand, rather than filling out paperwork and keeping up with renewing things.

4. Test Out the Heavy Equipment

Maybe you are unsure how often you'll use a given piece of heavy equipment or you’re on the fence about which model to get. Renting allows you to test drive the heavy equipment, which can help you make a more informed purchasing decision.

If you have questions or are ready to see your heavy equipment options, visit the experts at Magnum Power. Our staff can answer questions, provide advice, and help you find the right approach and model for your company's needs. We are located in Lawson, Missouri, and we also serve those in Kansas City and the rest of Clay County.