If you’re a contractor in Singapore, chances are you probably do a lot of excavating. Whether you have many contracts on the go, or one big job that needs an excavator, it can be tough to decide to rent or buy the equipment you need. While it’s a good idea to weigh the pros and cons for your personal situation including finances and current work needs, it can still be a complicated decision. There are more things to consider more than just the initial costs, so to help you decide on renting vs buying an excavator read on.
Looking at your current financial situation is the first step in deciding whether to rent or buy and excavator. This is not only about looking at the amount currently in your bank account, it also involves projecting your situation into the coming months or years. While buying a machine may have more of an impact now, renting may have a more steady drain on your income over time. Take this into account when looking at your future income, and also note busier and slower periods for your business. If you do choose to buy, reduce the impact of the cost by purchasing used equipment (which can be sometimes cheaper than renting the latest equipment), or applying for financing.
Ultimately at some point you will have to make some estimations on the costs of renting vs owning your own machine. Keep in mind that owning your own excavator will incur maintenance or operation costs (such as paying a member of your staff to operate it), insurance costs, and license costs. For rental, you may have to pay for an operator, additional attachments, or delivery fees. Sometimes these costs are included with rental. For both options, fuel will also have to be purchased.
How long are you going to be using the excavator for, and how often? These are important things to consider when looking at buying or renting. For a short project or a special occasion, you may not need to purchase your own excavator. But if you are going to be using the machine often, it may be a worthwhile investment. Keep in mind that if your job experiences setbacks, you may have to pay more for a rental that you are not currently using.
If you work on many contracts that need to stay on schedule, keep in mind that you will be bound by the availability of equipment. When you rent excavators, you take the risk of a rental company not having a certain machine available. When you own your own machine, you can use it when you need it, and this includes on overtime to keep projects on track. This option offers more peace of mind for yourself and your clients.
When you own your own piece of equipment, consider how you will manage it. If you are buying multiple machines, this may include paying someone to move them and watch over them for you. If this sounds like too much work, you may want to consider renting.