Why Rent Equipment? Why Not Own It? Some Pros of Renting.

7/17/2017 - 7:05:38 AM
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This is how we see it working out with our customers from the rental side. I'd welcome a guest blog on the Pros of equipment ownership.
OWN THE SUCCESS, RENT THE EQUIPMENT, AN APPROACH THAT IS WORKING FOR MANY.


If you’ve never rented equipment to take on additional jobs, tackle new construction challenges, or to supplement your equipment fleet, you’re probably missing profit and growth opportunities.

Renting equipment, rather than buying it, can increase your cash flow, cut equipment costs and free capital without increasing your debt ratio. The choice to rent depends on your business circumstances, the length of time or the number of times you will need the equipment.

In spite of Investment Tax Credit, contractors in ever increasing numbers look at renting as more than simply a way to occasionally supplement their rental fleets. Today, many contractors figure equipment rental into their overall business planning process. Behind the rental contract is this concept: if the use of equipment is temporary or limited and the purchase price is high, then renting is the profitable solution.

Renting Avoids:
• The cost of owning & operating heavy pickups and trailers. Gap Power delivers on time & efficiently.

• Maintenance costs. The rental contract generally covers full maintenance of equipment. You need no repair shop, no spare parts or repair
tools, no mechanic, no maintenance records.

• Missed opportunities and down time. When rented equipment breaks down, Gap Power replaces it fast. You don’t lose precious time while equipment is being repaired.

• Warehousing or storage. Return idle equipment to the Gap Power rather than using space to store it. Get it out of your way.

• Hidden costs. Cost control is easy with rentals. When equipment is returned undamaged, the amount shown on the rental invoice is the only accountable cost figure you pay.

•Botched jobs. Because more people will make do with what’s handy to get a job done, often equipment is used improperly, causing property damage and personal injury.

• Equipment obsolescence. Rental centers such as Gap Power update inventory each year, providing state-of-the-art equipment for their customers. And high-tech equipment doesn’t cost you money collecting dust when you can rent it as you need it.

• Capital investment. Rentals free your capital for more profitable uses than being tied up in costly equipment. And rentals increase your borrowing power by offering a better ratio of assets to liabilities. Rented equipment does not appear as a liability on the balance sheet.


Willy Stoltzfus.
CALL GAP POWER TODAY  Rt 30-Gap (717)442-8970
5 comments
I like that you talked about how you won't need to do any repair on equipment that you rent. I want to get started on a project I've been planning, and I wasn't sure if I should rent or buy equipment. I can see how it would be really convenient to rent, that way if something breaks I won't need to buy another one. http://www.allstarequipment.net/about_us.htm
Scott
8/16/2017 - 4:53:15 PM
You made a good point when you said that one of the benefits of renting equipment is it frees your capital, which means you could use it for more profitable uses than buying expensive equipment. My Uncle Jeffrey plans to open his own construction company soon. I'll share what you said with him so he would consider renting heavy equipment for the first year of his business to use his capital on other stuff. Thanks. https://solidequipment.ca/sales-copy/
Levi Armstrong
3/30/2021 - 7:25:21 AM
My dad needs to use some power tools for a project he is doing in our shed and he is wondering if he should buy or rent them. I like how you said that renting services covers the maintenance of the equipment in full. I will be sure to suggest that he find a reputable renting service to get his equipment from so he doesn't have to cover maintenance costs. http://royalhawaiianrentals.com/landscape-and-construction/4705363
Charlotte Fleet
3/3/2021 - 6:00:07 PM
It really is important to understand the benefits that renting construction equipment can get you. As the article points out, one of the bigger benefits is that it saves you money in both the long and short-term. This is because you do not have to worry about things like maintenance or having to upgrade the equipment every couple of years. Know more about us http://www.permixtec.com/company/

Thanks for sharing...
Double Planetary Mixer
9/20/2019 - 1:33:12 AM
That's a good point that renting equipment means that you don't have to pay for extra warehouse or storage space. My contracting business will be working on a unique project next month that will require some new equipment. Since this isn't what we typically do, it will likely be a better financial decision to rent the necessary tools rather than buy and store them. https://dynahoeequipmentrental.com/sales__services.html
Lyla Peterson
4/1/2020 - 1:16:59 PM
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