Renting vs Buying: How much does heavy equipment cost?
Posted by: Samuel Hirshfield on August 31, 2013
Have you ever considered buying a backhoe when it seems like you’re having to rent one all the time? While this appears to be a plausible solution, there are some drawbacks.
If there are no Compact Power Equipment Rentals in your area, then owning your own equipment can be a real advantage when compared to driving 100 miles to rent it. You will save time and money by choosing to purchase and maintain the equipment yourself.
Mini Skid Steer
Purchase Price: $20,000+
What do you do with your equipment when it’s not being used for the job? Leave it on site? Leave it on the trailer in the driveway and hope the HOA doesn't throw a fit? Secure storage becomes a priority when you own your own equipment. Less than 20% of stolen heavy equipment is recovered, compared to 57% of automobiles recovered.
Pro: You might save money.
If your work involves using a specific piece of heavy equipment on every job, then purchasing that particular machine may be a good investment for you. Things to take into consideration are upkeep and storage costs, however.
Tractor Loader Backhoe
Purchase Price: $25,000+
Con: You probably won't save money.
It is unlikely that you will save money by buying a backhoe for conventional contractor work. Even if you plan on operating your equipment every day of the week, it seems that the cost of buying and maintaining a machine will outweigh the cost of the occasional to frequent rental (plus you can get a discount for frequent rentals). Between the expense of insuring your equipment, maintenance costs, repairs, and storage fees, you’re looking at coming out of this deal with the short end of the stick.
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