Should you rent or buy when replacing construction vehicles?

Much like a luxury sports car, construction vehicles come with a hefty price tag that can keep construction companies from replacing them in a timely manner. While it’s important for a construction firm to replace worn-out or obsolete vehicles, the expensive equipment can jack up construction costs too much.
Construction vehicles may be considered as investments or capital expenditure and construction companies are now choosing between two options: buying and renting.

Buying

Purchasing a construction vehicle gives you reliability and productivity, especially because you own the equipment. As the owner, you get to control the maintenance schedule, thereby ensuring your clients that the equipment you are using can deliver. Did you know that you can get a full tax deduction on the first year of vehicle ownership? That’s a big advantage if you’re really hesitant to buy huge equipment at the beginning of a project. Buying the vehicle is also beneficial if you’re planning to use it frequently.

Renting

On the other hand, renting a vehicle for your construction needs gives you many equipment options without burning through your budget. You don’t need to worry about maintenance because the vehicle owner will take care of it. Initial costs for any project will be kept to a minimum because you don’t need to purchase bulky equipment at the beginning of a project. Also, if you need the construction machinery for only a short period of time, renting it is your better option.

Before making that decision on whether to buy or rent a construction vehicle do your research, weigh the pros and cons and think about whether you are able to get maximum usage from the vehicle or if you’ll only need it infrequently. Get more with our construction bid takeoff software today!

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