Trends in Buying vs Renting Large Forklift Equipment
Over the past few years, the equipment rental companies have witnessed mega growth in the developing markets. A survey carried out in 2020 found that even if leasing remained the leading strategy for most construction companies, heavy equipment rental has increased up to 75 percent.
While various equipment proves to be more popular than others, past trends show higher growth in renting over buying. So how about now? Especially since modern construction around the world is bigger, better and faster? To understand clearly about these trends in the heavy equipment rental industry, particularly focusing on the forklift, we have to look at things from multiple perspectives like forklift rental prices, rented forklifts needs, economic tendencies and massive projects.
Factors to consider when buying or renting large forklift equipment
The financial situation
Regardless of whether you want to rent or purchase forklift equipment, it is almost palpable that you will need to check your capital before making any decision. The cost of renting vs buying is primarily very different. If you want to buy, you also need to determine between the new or used forklifts for sale, which will work better for you based on your capital. The cost of renting can accumulate very quickly and may end up costing you more. Buying is a long-term financial outlay. You need to have enough money but a worthy investment.
Frequency of the job or length of the project
Another critical factor to consider is ‘how long’ your project (s) will take. This factor will determine which option will be cost-friendly. If you are doing a one-time project that will take about three to six months, renting may not be the option for you. You just need a specialized piece of a forklift for a one-time job and renting makes more sense.
However, if the forklift used for sale is not being used the entire time and the project gets unforeseen hold-ups, you may pay more for a machine that you didn’t use. Therefore, it’s quite prudent to check and counter-check such circumstances before making a decision.
The forklift use and availability
The best part about buying is that the equipment is there with you anytime you need it. If you have multiple projects underway, your forklift may not be required always, and that means if it is not being used in an individual project, it is being used in another. If it is being used throughout the entire project, it means completing the job with less downtime. Similarly, renting is a good option if it is a one-time project, and you have deadlines to chase.
The cost of renting vs the cost of owning
Again, it all boils down to the value of each. Remember, large equipment comes with licensing fees, insurance, maintenance and operational costs which of course vary from machine to machine. Renting, on the other hand, is an all-inclusive package, given that equipment rental companies have to turn in some profit.
The equipment rental market proves to have opportunities better than before. The positive trends across the globe generate a rippling positive impact for both construction and machine manufacturers. Whether to buy or rent a forklift heavily depends on multiple factors. However, it is critical to speak to an expert who can help you calculate which option will work best for you.