The cost of renting or buying an excavator is something that’s usually taken at its face value. The price between these two options has a huge discrepancy but is an essential cost for construction, roadwork, and mining operations.
Despite the excavator being an important piece of equipment for your project, there’s still a big question of whether you should buy or rent it, because of the considerable financial responsibility that goes into buying.
In this article, we talk about the pros and cons of buying or renting an excavator for your business. Keep reading to find out more!
What’s an Excavator?
An excavator is a heavy construction equipment that comes equipped with a dipper for different industrial uses. Having a machine like this in your arsenal can get manual labor jobs done in a fraction of the time.
Construction professionals know that excavators aren’t just for one’s digging needs. It can also be used for landscaping, mining, demolitions, construction, and material handling. Depending on the location, project type, and capacity of your operations, you can utilize different excavator types.
For example, if your project is in the city, you can opt for a wheeled excavator so that your company doesn’t do further damage to the roads. But, if your project calls for finesse because of the small working space, you can avail of a mini excavator.
Overall, excavators have many uses that can greatly benefit your business, but how will you know if renting or buying is for you?
Renting an Excavator
If you need to use heavy machinery for your operations but you won’t always need it for your production, then renting could be the best option for you. Not only do you forego the maintenance, storage, and depreciation expenses, but you also get to use up-to-date equipment without too much financial commitment.
Although renting is a great solution for your equipment needs, it can also have its disadvantages. One con is that you may run out of available units to rent leaving your operations stunted. This kind of problem can compound into bigger costs because your timeline won’t be followed, and your operations won’t be as productive.
In addition to the challenge of supply, you can also rack up a bigger bill because of the hours, miles, and gas expenses that you’ve accrued in the transit of your equipment.
An example of when you should rent is if you need to clear out multiple areas for a landscaping job, then it’s better that you borrow a mini excavator. Renting is a great short-term option for businesses that don’t need a fleet of equipment at their disposal.
Buying an Excavator
One of the biggest hurdles a company must face when purchasing an excavator is the price tag of the down payment and the continuous costs of maintenance and storage. However, the benefits of machine ownership can greatly outweigh its costs and even yield more savings in the long run. How so?
When you own an excavator, you won’t need to operate on a tighter timeline and your staff won’t feel the need to cut corners and hurry jobs that need their full attention. If you have multiple operations, possessing your own equipment can prove to be more economical in the long run, because you can assign your machine to different sites and adjust your timeline accordingly.
One of the greatest pros of having your own heavy machinery is that you won’t suffer from the possibility of not having an excavator to rent for your operations. Instead, the opportunity to rent out your equipment to competitors arises.
Aside from the advantages we’ve stated above, you can also have this equipment’s depreciation, maintenance, and gas costs deducted from your tax. This makes it an excellent investment for those looking for a long-term solution for their business.
For instance, if you’ve committed to multiple long-term projects in the city that’ll span you decades, then you should think about purchasing a Volvo wheeled excavator for sale.
The Verdict
In the end, an excavator’s costs can always be offset by its benefits to your company’s operations. Your business’s goals, size, project location, and timeline should always be the compass for your financial expenses.
If you need help figuring out the best excavators here in the Philippines, you can contact us at Topspot for assistance.
Contact Us
Learn more about Volvo Excavators by talking to one of our team members. We’ll give you all the information you need to allow you to make the perfect decision for your firm.
