Business owners who require the use of specific pieces of equipment in order to operate have a lot to take into consideration. It isn’t just a case of weighing up the cost of buying vs. leasing a piece of equipment; there is also maintenance, tax and availability to think about. Every business is different; what works for one company may not work for yours and, depending on your situation, the benefits of hiring may overshadow buying or vice versa.
Affordable Access to the Machinery you Need
Plant hire is a convenient solution for businesses looking to streamline their operations and compete effectively in the construction sector. By working alongside your preferred supplier of machinery, you have the ability to choose and use the exact piece of equipment you require from the wide range of equipment available. As such, you have affordable access to the same amount and quality of resources as a larger competitor.
Support and Assistance from Experienced Plant Operators
Representatives of a hire company can offer advice on the best piece of equipment for the job in hand. They will be able to take you through the hire options available to you, including short term contracts and leasing deals, and their highly knowledgeable and fully trained operators are there to support and assist you throughout the duration of the hire period. Your representative can make recommendations based on your specific needs before offering a tutorial on the safe handling of your chosen equipment or help you to troubleshoot equipment and/or swap a faulty unit with a new one.
No Upfront Investment or Long-term Commitment
If you choose to hire a piece of equipment rather than buy it, you only need to commit to hiring the plant you need for the length of time it’s required. There is no long-term financial commitment or upfront investment needed, so you can benefit from improved cash flow and a smaller upfront expense. This approach is flexible to a changeable construction market as you can return any equipment if it isn’t deemed necessary for the foreseeable future.
You will also find it easier and more cost-effective to supplement your existing capacity to meet the demands of a project by renting machinery as and when projects are won, rather than investing for an isolated project. Operating in this manner makes it easier to cope with the ups and downs of the market and the varying requirements of each project. You can also cut down outlay by not having to run the risk of buying machinery you don’t use.
One thing to remember if you do choose to buy is that, alongside storage, you will have to factor in the transportation of the necessary machinery from your location to the site. Transportation is expensive, time consuming and challenging, hence you may need to hire third party companies just to move your equipment easily. The benefit of hiring your machinery is that it’s the hirer’s responsibility to have the equipment delivered to the site.
Current and Well-Maintained Machinery Delivered to Your Site
Not only does renting allow you to quickly source the equipment you need, you will also have access to well-maintained plant machinery which meets safety legislation and lessens the threat of a breakdown. Imagine having complete peace of mind that your equipment works well and will always be up to date because it’s so easy to upgrade to the latest technology.
Equipment suffers if it is left outside for long spells and exposed to the elements or parked in a poorly ventilated area, so the cost of warehouse storage has to be considered if you prefer to purchase machinery outright.
No Unexpected Expenses
Working with machinery belonging to a plant hire company means you only have to make sure that your monthly payments are made in time. You don’t need to budget for repairs because the rental company handles maintenance needs, which frees up your own time and resources whilst reducing the inevitable stress and hassle that comes with organising repairs swiftly. After all, the bottom line is that it’s vital to keep downtime to a minimum. Some companies dedicate an entire department to the upkeep and repair of their fleet, which is something you won’t need to concern yourself with if you choose to hire your machinery from a third party.
Of course, it is widely accepted that vehicles lose a percentage of their value the moment they are driven away from the forecourt. You’ll never get back the amount you pay for a piece of equipment; the only way to get around depreciation is to hire, as it negates the need to worry about when you should sell and how much you should expect in return. What’s more, with technological advancements and the ever-changing nature of government/ industry regulations, purchased equipment can become undesirable, obsolete or even illegal to use.
Things to Remember:
- Hire terms are often fixed which means that, in some cases, lease terms may be longer than needed and monthly payments will have to be paid even if no work requires a particular piece of machinery.
- Agreements may require you to pay for and keep equipment for longer than you need it, regardless of whether you have the storage for it.
- Delays and inclement weather can extend the hire period and, subsequently, increase costs.
- Where interest must be paid, the overall cost of a piece of machinery can be more than the original value of the equipment.
- You can lose your machine if any payments are missed.
- Equipment which you have purchased can be sold or traded in to reduce the cost of new or upgraded machinery.
- If you don’t have equity on a product, there is no potential to make any money back.
If you do prefer the security of ownership, a rental agreement can give you the opportunity to familiarise yourself with an item of equipment prior to purchase. You even have the flexibility to try different makes and models for an effective comparison.
Talk to Anglo Plant Hire today to discuss your individual requirements and see how hiring plant machinery could help you save time, money and hassle.
