![]() The big advantage of owing your own equipment is that it’s available to you 24/7 – “if you own it, you control it”, as the saying goes. And a multi-purpose piece of equipment (loaders, excavators, skid steers, forklifts, trucks etc.) that can be used for various projects is a great asset on any jobsite. If you’re working on a long project, or if you’ve got several jobs on the horizon, then buying probably makes better sense given that rental costs add up quickly the longer a job goes on. The risk, of course, is that if the machine isn’t being used for the entire time it’s rented due to changes in the project schedule or unforeseen hold ups, then you’re spending money on a machine that’s sitting and waiting, not making you money. If it’s a short-term job, or you need a specialized piece of equipment for a one-off job, then renting may make more sense. Of all the things to consider, project length or the frequency of jobs on the calendar could be the deciding factor in whether you rent or buy equipment. Learn about 1031 Like-Kind Exchanges here. equipment owners: you may be able to avoid paying capital gains tax when you sell and buy equipment for your business. Talk to your financial advisor about the possible tax implications (or advantages) of buying or renting equipment for your business. Roughly, one-third or more of your total expenses will be for the cost of fuel. You will probably have to pay to transport the equipment to and from the rental store as well, over and over.įuel is a cost that is common to both owning and renting and needs to be considered for both. Renting is generally an inclusive cost, but given that a rental company has to turn a profit, you should consider that your rental fees will include the purchase price and the cost of ownership, both marked up. With ownership comes maintenance and operating costs, insurance and other fees such as government licensing, and those costs obviously vary from machine to machine. It’s also important to estimate the cost of equipment ownership versus the cost of renting equipment.
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