Heavy equipment is highly essential in a wide gamut of industries, such as construction, agriculture, oil and gas, landscaping, and infrastructure, among many others. Companies in these industries can buy or rent the equipment necessary for their operations. But is full ownership the right path? If not, what are the advantages of renting?
To make an informed decision that best suits your business’s needs, it’s crucial to thoroughly weigh these pros and cons. Driven by the mission to continually improve and provide superior, ethical service to all ASCO customers, we’ve listed some advantages and disadvantages of renting vs. buying heavy equipment to better help you with this decision.
WHY BUY? THE ADVANTAGES OF OWNING HEAVY EQUIPMENT
In industries like construction, mining, agriculture, and more, having dependable machinery is crucial to accomplishing tasks efficiently. When contemplating the acquisition of equipment, it’s essential to assess both usage frequency and the pros and cons of ownership.
Owning heavy equipment offers unparalleled convenience, ensuring the machinery is readily available whenever needed. However, it does come with several factors to consider, such as maintenance requirements, storage considerations, and potential resale value.
Owning the equipment gives you the freedom and flexibility to use it according to your specific requirements. It eliminates the need to rely on external sources and gives you the power to control your operations. While maintenance and storage responsibilities must be managed, the long-term benefits and potential for asset value appreciation make ownership an appealing choice.
Save Money
Tired of paying rental fees for frequently used equipment? Owning heavy machinery is a cost-effective investment, reducing interest rates and providing tax incentives while expanding your asset inventory. Continuously paying rental fees can quickly accumulate and surpass the cost of outright purchasing. If a particular equipment accounts for over 65% of your operations, owning it becomes the wiser financial choice.
Consider exploring affordable options like purchasing pre-owned or used equipment. Even minor expenses can impact your bottom line and future projects, making ownership a favorable long-term solution for your business’s financial health.
Stay Competitive
In highly competitive industries, securing the best projects often relies on offering the lowest bid. To stay ahead, businesses must keep costs in check. Making informed decisions regarding equipment rental or purchase becomes pivotal in achieving this goal. By minimizing equipment costs, you not only improve your profit margins but also increase your chances of winning bids and landing more lucrative projects.
With ASCO’s high-quality construction, mining, or agriculture equipment, you can confidently submit competitive bids without compromising on the quality of your work. Enhancing your reputation as a cost-effective provider becomes a tangible advantage in the industry.
Experience Tax Incentives
Under IRS regulations, businesses can write off heavy equipment expenses used for professional purposes. The updated tax law allows for a 80% first-year bonus depreciation on qualifying equipment costs. Notably, the Bonus Depreciation is available for both new and used equipment.
These advantageous tax incentives significantly reduce the overall cost of equipment ownership, making buying heavy machinery a more financially viable long-term investment for businesses.
Add To Your Company’s Value
Owning equipment translates into building your company’s assets, augmenting its value, and strengthening your borrowing capacity. By acquiring construction, mining, or other essential equipment, you amplify your business’s profit potential. Owning more assets provides greater opportunities to secure financing for future growth and expansion endeavors.
Additionally, equipment ownership grants you increased control over your operations and the ability to customize machinery to suit your specific needs. This customization leads to enhanced operational efficiency, ensuring your equipment aligns precisely with your business requirements. Ultimately, greater efficiency and profitability become tangible outcomes of owning and tailoring equipment to fit your unique operations.
WHY RENT? THE ADVANTAGE OF RENTING HEAVY EQUIPMENT
Renting tools and equipment presents a wealth of benefits that should not be overlooked. While it may involve higher costs than loan payments, its advantages and convenience are undeniable. If your business doesn’t require specific equipment frequently, lacks adequate storage space, or aims to maintain optimal productivity during peak seasons, equipment rental becomes a game-changing solution.
ASCO understands your needs and offers flexible rental options–spanning daily, weekly, and monthly pay periods–with rates that won’t strain your budget. Our commitment to providing top-notch rental equipment empowers your business to thrive in your industry. Embrace the advantages of equipment rental and position your business for success.
Freedom from Long-Term Commitment
Forget the burdens of maintenance and storage that come with equipment ownership. Opting for equipment rental grants you the freedom to use it when needed and return it afterward. No need to worry about future breakdowns or repair costs.
ASCO’s rental department offers a wide selection of meticulously maintained heavy equipment readily available for your next project. Experience hassle-free flexibility and peace of mind.
Cost-Efficient Flexibility
When tax season arrives, take advantage of construction and agricultural equipment rental expenses, which can be deducted as business expenses. This smart move reduces your tax liability and frees up funds for other investments.
Renting is also a viable option if upfront capital is limited or you prefer to avoid ongoing insurance and maintenance costs associated with equipment ownership. Embrace the flexibility of renting and allocate your resources wisely.
Unlock More Time for Productivity
Discover the ease of renting from a trusted mining and construction equipment supplier. Say goodbye to tiresome searches for competitive pricing or superior machinery.
With a reliable heavy equipment partner like ASCO, renting and returning equipment becomes a seamless process. You gain access to virtually any equipment you need, empowering you to take on more jobs with confidence. Our delivery and pick-up services save you valuable time, allowing you to focus on your work instead of loading and unloading heavy equipment.
Reliability You Can Count On
Avoid the headaches of equipment breakdowns and technical service by opting for equipment rental. For those lacking repair expertise or struggling to find high-quality replacement parts, downtime can be costly. With our trusted and well-maintained rental fleet, you can rest assured that reliable machinery is always at your fingertips.
By eliminating equipment downtime, you prevent losing business to competitors and maintain a stellar reputation among your valued customers.
Convenience without Maintenance or Storage Worries
Starting out with limited storage space? Rental equipment is the ideal solution. Renting spares you the responsibility of maintenance and upkeep. You gain access to the latest technology and equipment by choosing rental options, ensuring exceptional quality and reliability for your projects.
Embrace the convenience and flexibility of renting, allowing you to focus on what matters most—delivering outstanding results.
ASCO is Here To Help
Choosing between renting and buying heavy equipment requires carefully considering myriad factors, including upfront costs, long-term financial implications, maintenance responsibilities, and even tax benefits. In a nutshell, renting offers reduced upfront costs, constant access to the latest technology, and maintenance support; buying heavy equipment provides long-term cost savings, complete ownership, customization options, and the potential for resale value.
Though this decision may be challenging, one thing is sure: Team ASCO is here to help you. As an industry leader with over 60 years of experience, we aim to provide superior service to all ASCO customers by exceeding expectations and outserving our competitors.
Learn More About Renting vs. Buying Heavy Equipment with ASCO
As a family-run business with over 60 years of experience, ASCO Equipment is a leader in the heavy equipment industry. With 27 locations throughout Texas, Oklahoma, and Eastern New Mexico, ASCO offers a wide range of equipment rental options, like skid steer loaders, excavators, forklifts, boom lifts, concrete equipment, and air tools.
Interested in renting heavy equipment? Talk to Team ASCO today to learn more.