Renting vs. Buying: What is the Best Option for Your Company?
With the current struggling economic situation here in Alberta and across the country, it is now more important than ever for construction companies to find cost-saving opportunities during their urban development plans. As your construction company grows, it can also be difficult to determine the best fit for sourcing your construction equipment in Edmonton.
What makes the most sense for your organization? Will owning equipment make your company more profitable? Or will it hurt your bottom line? The decision should be carefully considered so that it ultimately helps you achieve your long-term goals.
Weighing the pros and cons
If you only need the equipment on a short-term basis, then construction equipment rentals are a more logical decision. You can still write off the expense, but you don’t have to worry about all the extra costs like maintenance or downtime. It’s also a good way to try equipment before making a costly purchase.
However, there are many advantages to owning equipment if you have the demand to warrant the initial expense. Buying your own equipment allows you to deduct the depreciation, insurance, repairs and taxes, but it can also be a significant drain on company resources. If you buy the equipment you’ll need to factor in storage and transportation costs as well.
Advantages of construction equipment rentals
- Initial investment is lower
- Flexible payment options
- Have it only when you need it
- Access to a wide range of state-of-the-art equipment
- No storage or maintenance costs
Advantages of buying construction equipment
- Cheaper over the long run
- Business write-off
- Less downtime
- Equipment is always available
- Return on your investment if you decide to sell it later
Not sure which option is right for you?
At W.R. Scott Equipment Ltd., we make it easy for you to source a wide range of sales and rental equipment, including skid steers, compact excavators, loaders, and more. Give us a call, fill out the form on our contact page, or visit us in Edmonton today!
About W.R. Scott Equipment
Since 1967, W.R. Scott Equipment Ltd. Has been providing construction equipment rentals to contractors across Edmonton.
Our mandate is to provide you with the very best in personalized customer service to ensure all your needs are met so that you can get the job done right. Visit our website to learn more about renting from W.R. Scott Equipment Ltd.