So, it’s time to buy some new construction equipment for some work coming up. It can be a decision that will help you substantially in building a new home and carving out your future plans. Nevertheless, there are also things you should bear in mind before making the purchase. Here are 5 considerations you should make before taking the dive.
- Financial Situation
It is important to consider the financial repercussions that come with purchasing construction equipment. Before making the purchase, think whether renting is a plausible option. Depending on the length of your project, sometimes renting can be a cheaper option. Other times, it can also add up over a long period. Evaluate the financial situation you’re in and what investing in construction equipment will cost you. Tight on cash? You can always finance your equipment and pay in installments so you still own the equipment but won’t be financially strained in the process.
- Cost of Ownership and Cost of Renting
Similar to assessing your financial situation, it is also important to determine the cost of equipment ownership and the cost of renting. When you own equipment, it comes with maintenance and operating costs such as government licensing, insurance and costs to maintain the health of the machine. These costs can add up in the long run. When renting you’ll also have to consider purchase price and cost of ownership as well as transporting equipment from the rental store back and forth. You can also consider purchasing construction equipment here where, instead of renting you can purchase equipment through an auction and save money at the same time.
- Length of Project
Another important component to consider is project length and frequency of jobs where you’ll need construction equipment. This also plays an important role in the purchase of your equipment as well as determining what equipment you’ll need. For short term jobs, you’ll most likely need specialized equipment. However if you’re planning on working on a more long-term project, then buying equipment would probably be the better bet and the best way to make use of your time and money.
- Equipment Usage
The advantage of owning equipment is having it available at any hour of the day. This is something to consider before making a purchase. If long term projects are the main purpose of the equipment then purchasing it would allow you to own it and control it. It also takes away the hassle of the renting company not having the construction equipment you need.
Before making a purchase, managing your equipment is another important thing to consider. Storage space, insurance and maintenance should be on the top of your list. If you don’t have space to store your equipment, purchasing wouldn’t be an option. You should also consider disposal and how much it costs to dispose a machine the size of construction equipment. Those prices vary place by place and it can very well determine whether purchasing construction equipment is the right choice for you.
Purchasing construction equipment can be a smart investment for the long run when done right. So take some time to plan your options, budget well and begin investing in the equipment that work for you today.