Reasons to Hire Equipment Instead of Buying It

When contractors need to use heavy construction machinery, they have to make a choice between two options — to obtain a loan and buy the equipment outright; or, to lease the equipment. Equipment leasing involves obtaining the use of equipment on rental basis from an equipment leasing company. This eliminates the need to incur huge costs of equipment purchase — the renter or lessee is only entitled to the actual use of the equipment — ownership fully lies in the hands of the leasing company. 

Equipment leasing is increasingly becoming a more popular alternative among construction contractors in Australia because it offers a number of advantages over equipment ownership. Continue reading on below if you'd like to know about these advantages.

Presents an opportunity to use equipment you can't buy outright.

It's perfectly normal for businesses to face financial challenges, especially when they need to make a huge capital investment. Equipment rental offers contractors the chance to use equipment they need but you can't afford to purchase outright. There is no need to make a significant down payment as is the case when obtaining equipment through loan financing. In addition, you'll pay smaller monthly payments than you would have with a loan.

Saves you money over the short term.

Generally speaking, heavy construction machinery typically gives a higher return on investment when it is used over the long term. If you intend to use a piece of equipment on a short term basis, equipment leasing can prove to be substantially more cost effective than equipment ownership.

Allows you to use latest equipment models.

Companies the lease out heavy construction equipment usually offer the most up-to-date versions of the equipment you need. This is because they have higher equipment turnover rates, which allows them to reap maximum returns on their capital investments without shorter periods. Therefore, you stand a better chance of using the latest technologies by opting for equipment rental.

No depreciation costs incurred.

At the end of your lease, you simply return your equipment to the leasing company. You don't have to include depreciation costs on the equipment in your financial books because you do not own the equipment.

No obsolescence.

On expiration of your rental, you don't end up with outdated machinery. Therefore, you won't need to write off the equipment from your financial statements, meaning your bottom line won't be hurt by your lease.

If you think equipment leasing or hire is right for you, talk to the staff at a local equipment leasing company like Master Hire Pty Ltd to get your quote.