When to Rent and When to Buy on the Jobsite

Running a construction project comes with a good amount of not-that-exciting things and deciding whether to rent or buy equipment is one of them. If you make the wrong call, the equipment might end up sitting idle, which is a huge waste of money. What’s even worse is that making the wrong decision could hold up your entire schedule because you didn’t have what you needed on time.

When it comes to decisions on the jobsite, they’re all about speed, cost, and convenience. If you decide to buy equipment, it might seem like a smart move in the long run, especially if it’s a machine that will be used all the time. But if you rent, you have much more flexibility, especially when projects change or timelines get pushed. And if we’re being frank, this happens all the time.

So, what’s right for your job? How do you decide? Read on and find out!

What to Consider Before You Make the Call

Take a step back and look at the big picture. The right choice isn’t always obvious, so what might work for one job could be a total fail for another. Here’s what to think about before making a decision.

1. The Duration of the Project

How long will you actually need the equipment? If the project is long-term and it will last for a few months or even years, and you know the machine will be in use all the time, it might be smarter to buy it. If you own it, you have access to it whenever you need it, with no rental return dates or extra fees.

But if the job is a one-off, renting makes way more sense. There’s no need to have the machine for a long time and you can just return it once you no longer need it.

2. Frequency of Use

It’s also important to think about how often you’ll actually use the equipment. If it’s something you fire up every day, then by all means, go ahead and make the investment to buy it. You’ll get your money’s worth in no time. But if it’s something you’ll need once in a while, renting is a much better option, otherwise you’ll pay to own something that will collect dust most of the time.

3. Maintenance and Storage

If you own the equipment, you have extra responsibilities that you won’t see on the invoice. There’s maintenance, unexpected repairs, and finding storage. All of this costs money, and it adds up quickly. But if you rent, most of that is handled by someone else. No maintenance, no repairs, and you just return it when you’re done.

4. Capital vs. Cash Flow

Let’s talk money now. Buying equipment is a capital expense and it ties up cash that you could use elsewhere. Renting, on the other hand, falls under operating expenses. There’s no huge upfront investment with it, and it’s easier to budget for short-term jobs. If you’re a small contractor, keeping cash flow flexible is more valuable than owning equipment.

5. Equipment Obsolescence

If you decide to buy, you’re committed to that machine for years, but do you want that? Construction equipment is evolving, and newer models are faster, more efficient, safer… Better, in general. Eventually, you’ll either have to resell the machine or deal with working with outdated tech.

If you rent, you get access to the latest equipment and you’re not stuck with something old for years.

When Renting Works – and When Buying Makes More Sense

You know when the real test of whether to buy or rent shows up? When it’s least convenient – in the middle of a project.

Say you’re managing a seasonal warehouse expansion. Everything’s going great, but the team needs one more forklift. The site manager thinks, “where do I find a forklift rental near me?”, and then quickly searches for one on his/her phone or computer. Once the desired rental is selected, the unit is delivered that same day. Zero delays and the project stays on track.

Maybe you have contractors working on rotating job sites in different states. If you were to buy the equipment, you’d have to pay to have it hauled across regions. Again, renting is the clear winner here as well.

But of course, sometimes buying makes more sense. Picture a contractor running the same kind of work all year and having to rent them all the time. It’s not feasible, and buying is a much better option. And if the equipment is used every day, it pays for itself quickly. Plus, if it’s regularly maintained, it still holds resale value down the road, which isn’t something you get when you rent.

Conclusion

All things considered, there’s no option that’s better overall. To make the right decision, you have to focus on what works and what is practical. Something might sound good on paper, but if it doesn’t go well with your project, it’s not the way to go.

Besides, who says you need to commit to one or the other? Rent this, buy that, and you get the best of both worlds.