When assessing the work ahead and the equipment needed for your projects, you as either the contractor or developer first must evaluate what makes the most sense for the machinery needed. Is it best to rent or buy? The ultimate choice will depend on a number of different factors, but Josh Peddycord, Fleet and Remarketing Manager for SANY America, has some tips and suggestions to help make sense of when each option might be right for you.
If you have a short-term project or need a specific piece of machinery for a one-off need, renting is often the right choice. Typically, rentals are most convenient if the project is only for a few weeks or if a contractor needs a specific machine to accommodate a specialized attachment or unique working condition.
Sometimes, however, in the course of renting, contractors find that they have even more uses for a mini excavator or maybe even a large excavator than originally expected – and that’s when the RPO, rental purchase option, can be handy. This is a great choice for contractors looking to have the option of a buyout, striking a balance between leasing and regular rental contracts.
“[RPOs] are typically six months or longer and defined by a specific time frame,” said Peddycord. “A contractor can apply a portion of the monthly payment toward the agreed upon purchase price and then purchase the machine at the end of the rental period.”
A rental or RPO contract can also provide peace of mind for a contractor. In some cases, the rental fleet owner will handle maintenance and upkeep needs for the machine being rented, eliminating the need for a contractor to worry about routine service. Rentals may also be backed by a downtime guarantee, meaning that if there’s any major breakdown or mechanical issue, the rental supplier will provide a replacement machine, eliminating concerns about equipment being out of service.
Finally, if you are replacing an old machine or looking to add something new to handle increasing work demands on a long-term basis, there’s a good chance that buying is the best bet. Choosing to purchase a new machine means that your payments go toward ownership in a new piece of equipment that you can own and sell in the future.
According to Peddycord, “Understanding the total cost of ownership (TCO) when purchasing is pivotal for the buyer, and the more you know before buying, the better decision you can make.”
There are many factors that go into understanding the TCO, such as the value of the new machine compared to market rate or the estimated resale value of a machine after a few years of use. There is also the expected cost for maintenance and repairs – one of the areas that SANY machines offer a distinct advantage in with the industry’s best warranty on new equipment. Finally, with our commitment to supporting and servicing first-class products, buyers will also find a partner that can help with everything from routine service needs to parts ordering and warranty repair work.
Benefits of SANY
Whether you rent or buy, you can count on SANY equipment to be ready to get to work when you are. Delivering equipment Made for America, SANY New York is committed to you and your needs with machines that are built tough using components from well-known brands and tested to work in some of the most difficult working conditions.