Here’s an overview of some of the things you should bear in mind before deciding when to buy and when to rent equipment.
1. Current financial situation
This seems like the most obvious factor to consider – do you currently have the capital to buy or is renting a better option for now? But you should look beyond your current situation and project your costs over several months or years. Although buying may be a larger one-time financial outlay, the cost of renting can add up quickly, and over a long period of time can end up costing you more – especially if the equipment isn’t being used for the entire rental period. And don’t forget: when you own, you can see a return on your investment when you sell. (Use the handy cost calculator below to find out which option is best for your current situation.) You can reduce the initial financial impact of buying a piece of equipment in many different ways:
Buy good quality used equipment – when you rent, you are often paying for the newest equipment with the latest technology; purchasing well-maintained used equipment can be cheaper than buying new equipment and may be more cost-effective than renting over the long term
Finance your equipment purchase – give your company some extra financial breathing room by financing your equipment purchases and keeping your capital to run your business; with financing rates as low as 5.99%, your payments could even be lower than rental payments
