Buying Vs. Renting Construction Equipment As A Start-Up: The Pros And Cons

It can be difficult to know the best move as a construction start-up when renting or purchasing construction equipment. This comes down to your budget, if you have any contracts lined up, and if you have a storage facility to store large machinery when not in use. If you are a construction start-up, read on to find out the pros and cons of buying vs. renting construction equipment. 

Con: Buying Costs More Than Renting 
As a start-up, buying machinery can cost you a lot, which is not beneficial if you don’t even have a contract yet. Like with any business, it can be worth getting a loan secured to get the right equipment, so you are ready for any job. You also need a safe facility to store equipment when not in use. 

Buying refurbished or used machinery can save you money if you buy from a trusted seller. If you are looking for a cheap forklift for sale in the UK, take a look at Multy Lift. They offer refurbished forklifts at a great price, so you can get construction equipment within your price range. 

Pro: Buying Means You Own The Equipment
Owning your own construction equipment is great news for businesses looking for a construction contract. With renting, it can take time to get all the equipment ready, meaning you have to wait around to start the job. Owning your equipment means you are ready to start straight away and don’t have to worry about sourcing the cheapest rental equipment. 

Con: Renting Can Cost More 
Although renting doesn’t cost as much upfront, you could be paying a lot more to rent equipment rather than buy it in the long run. As a construction business, it is better to purchase the core essentials that you will use again and again. You can always add machinery as required once you start earning more and working more contracts. 

Not only can it cost more, but there may be times you cannot get the right equipment for the job. This will waste time finding the right equipment or making the job work without it. As a start-up, this will not look good to other businesses that are relying on a quick turnaround. Here are some more top tips when starting your construction business

Pro: Renting Saves On Maintenance Costs
As with any machinery, maintenance can be expensive, especially if you have not been caring for your construction equipment properly. Regular equipment maintenance can lower this cost and make sure you spot faults before they get worse. When renting, any maintenance issues are paid for by the company, and regular servicing is another expense you do not need to worry about.

All in all, it comes down to how you have planned for your business to operate and how much funds you have to use. Consider taking a closer look at your financials to find out if purchasing makes sense for you, or meet in the middle and purchase pre-owned equipment at a discounted rate.  This guide can help you decide whether renting or buying is more beneficial for your construction business start-up. If you need assistance with purchasing equipment, you can find a start-up loan or check if the government has any schemes that can fund your start-up. 

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