Rent Heavy Equipment or Buy Used Equipment? These are the Pros and Cons!
Product | 20 March 2023
Industrial business is inseparable from the use of heavy equipment, therefore these business people, whether on a large, medium, or small scale, need to calculate and plan the right expenses for the investment of heavy equipment to be used, because there are also other costs such as maintenance costs as well as operational costs that need to be taken into account.
Therefore, in planning these costs, of course, you as a business owner want the costs incurred to be as minimal as possible and still get good quality. There are several options that you can choose from regarding investing in heavy equipment with a lower budget for your industrial project, such as buying used equipment or renting heavy equipment. What are the advantages and disadvantages of these options? Let's look at the information below.
Heavy Equipment Rental
Renting used heavy equipment is an option to save your budget. Heavy equipment rental is also suitable for projects in the short or long term because the duration of the rental can be adjusted according to needs.
Advantages of Heavy Equipment Rental
Some of the advantages, if you choose to rent used heavy equipment, are:
The costs incurred are less than buying a new type of heavy equipment.
There is no need to pay for routine maintenance on heavy equipment
There is no need to prepare a parking area to park heavy equipment units.
Get a variety of tools that can be rented within a flexible period, and can be adjusted to what heavy equipment your project needs.
Disadvantages of Heavy Equipment Rental
The disadvantages that you can consider when renting heavy equipment are:
Business owners do not have complete control over the condition of heavy equipment. If you are not careful in choosing a rental provider, it could be that the heavy equipment being rented is not in good condition and you will need to bear other costs.
Even though there are various variations of heavy equipment available, the heavy equipment that can be rented also depends on the availability of units. Therefore, it could be that the unit you need is not available at the time you need it.
There is a possibility that the rental fee will become a sunk cost or wasted cost because part of the cost from the difference between buying and selling heavy equipment cannot be obtained.
Purchasing Used Equipment
Apart from the heavy equipment rental option, you can also choose the option of buying used equipment if you want to reduce the costs incurred to buy heavy equipment.
Pros of Buying Used Equipment
Not only a matter of cost, but used equipment also has the following advantages:
Used equipment has a productivity level functionally and quality that is not inferior to new heavy equipment.
The resale price on the market for used heavy equipment units is more stable, therefore if one day you want to resell it, the price will not be too far from the purchase price.
The technology used is used equipment that has been widely used or tested so that operators are easier and more familiar with the operation. Unlike new heavy equipment that also has technological updates that make operators need to adapt and re-learn the available features.
There are many choices of used equipment available, starting from the brand, model, and also type of heavy equipment. This can help you find the machine that best suits your needs and budget.
Disadvantages of Buying Used Equipment
Even though it has many advantages, there are also some disadvantages of used equipment that you need to know about, namely:
Machine performance on used equipment depends on previous users, if it is not cared for properly, and already has high hours of use, there is a possibility of damage or malfunction of used heavy equipment.
You need to check various parts and physically very carefully when you want to buy used equipment, this is important so that you know for sure the condition of the heavy equipment if it is damaged or lacking in certain parts.
Most used equipment has long enough flying hours so it is only natural that the warranty for the tool has expired. Therefore, if damage or problems occur after purchase, repair costs need to be borne by yourself.
That was information about the advantages and disadvantages of renting heavy equipment and also buying used equipment that you can consider according to your needs and budget availability. If you need flexible heavy equipment rental, SHN provides short-term heavy equipment rental services starting from weekly, monthly, and yearly rentals. Information about available units for short-term rent can be found here. Not only short-term rental, but SHN also has a long-term rent service with a minimum contract of 1 year. You can see information on the units available for long-term rental on this page. And for those of you who are interested in buying used equipment with reliable quality, you can visit the following SHN page. You can also access more complete information regarding unit availability and other services available at SHN on the official SHN website here or through the SHN Contact Center at 1500-072 (Ext. 5) and WhatsApp at 0811-7230-383.