There are several considerations when deciding whether it would be better to purchase or hire a mobile crane or similar equipment. Either way it represents a large financial commitment, so it’s best to consider the matter carefully before making a final decision.
When it comes to deciding between crane purchase or crane hire Lincoln company APH offers the following advice:
Renting offers a significant saving as opposed to purchasing, so you can improve your balance sheet at the end of the year. Renting allows you to simplify accounting and billing, as you have a single cost with one vendor.
When renting, you can access the equipment you need, when you need it, and so keep your equipment inventory to a minimum.
The right equipment for the work
Renting allows you to select the type, size, and latest-generation equipment for work with few hours of use, without degrading productivity in the long term.
A good equipment hire specialist will be able to provide support day or night, with customer service representatives available to solve any problem quickly.
Save on storage
You can considerably reduce costs by getting rid of the need for extensive storage areas, and buildings, for equipment.
Avoid distractions that are not your core business
Maintaining equipment wastes a lot of your time and that of your work team. Focus on your core business.
Avoid costly repairs and maintenance
Renting means that the supplier will take care of the maintenance, so you will not need a repair shop, inventory of spare parts, mechanics or extra personnel to attend to the maintenance of the equipment.
Savings in elimination costs
You will not have to spend time, money or effort in the preparation, advertising and sale of second-hand equipment.
Immediate equipment change
In case of damage, you simply request the change of the equipment, and never have to stop the work for long periods of time.
Prioritise your money by renting the equipment you need and use your capital in other more important and potentially lucrative business development activities.
The value of the equipment rental payment is 100% deductible for tax purposes at the end of the year. In addition, there is no tax implication for any growth in value of fixed assets. So, renting is more tax-friendly.
Savings on insurance expenses
As you are not the owner of the equipment, you do not need to worry about obtaining the necessary insurance for the equipment.
Overall, unless you can guarantee the continual use of the equipment, and avoid idle downtime, it makes more sense to hire as required for each project, rather than be saddled with all the responsibility and costs associated with ownership.