Home > Renting vs. Buying Heavy Equipment in 2020
Renting vs. Buying Heavy Equipment in 2020
2020 has brought unique challenges to the construction industry. Protecting against COVID-19 requires creative solutions to maintain profitability during a slower economy. And as social distancing restrictions are loosened, a surge in demand will require new solutions to navigate the boom effectively. But with these challenges come benefits.
Renting and buying heavy equipment reveal new solutions for today’s marketplace. Whichever option you choose, you can put your business back on track to ensure it runs smoothly as business picks up, and at the same time, put your business on a more solid footing in the marketplace.
The Benefits of Renting
Many businesses have cut back on workforces due to decreased demand and complying with social distancing and flattening-the-curve measures. In many cases, workforces are broken up into multiple schedules, slowing productivity.
This reduction creates vulnerability when COVID-19 restrictions are lifted and a there is a boom of new work. Increased demand creates a stronger and more immediate need to catch up. Renting equipment helps you increase production without maxing out your fleet or having to wait for your current machines to finish a job. More machines create more work, and renting allows for less strain on your profits in a time when every penny counts.
Renting equipment also results in reliable project completions while providing you with quality, well-maintained machinery with reliable service support. This is particularly true of Carter Machinery rental equipment. Link?
In cases where you have jobs that require long distances, renting also reduces the cost and time of hauling needed machinery to job sites.
Renting also helps you navigate the ups and downs of transitions more effectively. For example, there may be a resurgence of COVID-19. Renting lets you pull back as needed, so you remain profitable. When business returns, you can quickly meet demand, even establishing a stronger reputation in the marketplace as a reliable business. Renting gives you the flexibility to roll with the punches.
Benefits of Buying
Regardless of your position in the marketplace, new policies and demands are opening doors to permanently improve your equipment fleet.
This year’s Government PPP loans are helping businesses maintain payrolls and provide additional cash to invest in the growth of fleets. In addition, lower financing and leasing rates as low as 0% or 1.9% are helping, and deferment options are available upon request. All of the benefits work together to make ownership a reality for more businesses.
Buying can also be a better solution for certain types of work. Social distancing has created less time at the office and on public roads. This can lead to more government projects, residential construction, and business improvements.
Fewer drivers on the road allow governments to complete much needed projects and maintenance on roadways. In addition, landscapers, contractors, and utility companies may experience a boost in work for home and business remodels. As employees spend more time at home, they have an opportunity to complete much-needed home projects, and businesses they work for have greater opportunity to make needed improvements as well.
If you expect to see more work in these areas, expanding your fleet allows for more flexibility in meeting new demand while staying fully prepared for the boost in construction work as COVID-19 restrictions are lifted. Each payment option available helps to pay off your investment while adding to the value of your business.
If you’re in the market for machinery, consider browsing our wide range of used equipment, including like-new, low hour machines priced and available on Carter Machinery lots. Contact a sales representative today at 855.239.9675.
If buying is still out of reach, you can extend the life of your fleet with special rebuild financing options on select Cat equipment and components. All Cat machinery is made to be easily maintained and rebuilt, so this makes it an ideal time to invest in improvements that result in better overall service during the coming boom and beyond.