Renting vs. Buying Machinery: Which Is Best for Your Business?

Whether you’re self-employed, a construction manager, or the head of a construction company, there comes a crucial moment:
Should we invest in purchasing machinery, or is it better to rent it on a project-by-project basis?

There’s no single answer. It depends on multiple factors, such as frequency of use, the type of machinery, the size of your company, and even the economic context. This article is designed to help you make an intelligent and profitable decision, based on analysis, real-life examples, and field experience.

Understanding the key differences

Before going into details, it’s essential to clarify what each option entails:

  • Purchasing machinery: a long-term investment, with high initial costs, full ownership of the equipment, but also responsibilities for maintenance, depreciation, and storage.
  • Renting machinery: pay-as-you-go use over a specific period of time, with no commitment to ownership, ideal for specific needs, with maintenance included and a lower immediate tax burden.

How often are you going to use the machine?

This is the first key filter.
Think about a mini-excavator: Are you going to use it every month or only on two projects a year?

If the answer is “I use it almost every day,” buying is the logical choice.

Example: An excavation company that works on multiple jobsites each month can quickly make a profit on its own machine.

If the answer is “only for certain specific jobs,” renting prevents you from having an idle asset.

Example: A renovation company that needs a mini-excavator only for specific pipelines can save a lot by renting by the day or week.

How does it affect your company's cash flow?

  • Buy:
    • You need a large initial investment or financing.
    • It’s an accounting asset, but it reduces short-term liquidity.
    • You can depreciate it for tax purposes over several years.
  • Rent:
    • You only pay when you use it.
    • Immediate tax deduction as an operating expense.
    • You maintain liquidity for other investments or unforeseen events.

Real example:
A self-employed person with little capital may prefer to rent machinery to avoid debt. On the other hand, an established company can take advantage of the purchase to balance its tax burden with depreciable assets.

Who is responsible for maintenance?

  • With purchase:

    • You assume the cost of preventive and corrective maintenance.

    • If it breaks down, you lose time and money until it’s repaired.

    • It requires qualified personnel or external maintenance contracts.

  • With rental:
    • The supplier (like Makitrucks) takes care of everything.
    • If there’s a problem, the machine is replaced quickly.
    • You have a constant operating guarantee.

Practical tip:
In demanding work environments, breakdowns are inevitable. When you rent, you’re protected. When you own, you’re responsible.

Do you have space to store the machinery?

This is something that’s often overlooked:

  • A machine that’s idle needs a safe, covered space, protected from the weather.
  • If you don’t have a warehouse or land, storing it also costs money (rent, transport, security, etc.).

With rental, the machine arrives when you need it and is removed when you’re done. Zero worries.

What happens if your needs change?

Today you may need a mini backhoe. Tomorrow, a forklift or a dump truck.
Purchasing locks you into a specific model. Renting gives you complete flexibility.

In sectors as variable as:

  • Modular construction
  • Building renovation
  • Public works by tender

…the ability to adapt quickly is key to competing.

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Renewal and technology: How often do you change your equipment?

Technology advances. Models improve. Environmental regulations change.
Over time, your own machine may become obsolete or less efficient.

Advantages of renting at this point:

  • You always have access to updated, serviced, and efficient models.
  • You avoid having an outdated machinery fleet.
  • You improve your company’s image by using modern, well-maintained machinery.

Detailed technical comparison

Factor Purchase Rental
Initial investment High Low or none
Tax depreciation Long term Immediate deductible expense
Maintenance Owner’s responsibility Provider’s responsibility
Availability Immediate (if owned) High (if planned properly)
Flexibility for new projects Limited High
Technological obsolescence High Low (updated models)
Storage needs Yes No
Resale value Can be resold Not applicable
Downtime risk due to breakdown High (your responsibility) Low (immediate replacement)

What customer profile is best suited to each option?

Ideal for purchase:

  • Established companies with a steady flow of projects.
  • Businesses with in-house mechanics and their own warehouse.
  • Teams that consistently operate the same machine.
    Users who desire full amortization and control.

Ideal for rental:

  • Self-employed individuals or SMEs with sporadic projects.
  • New companies that prefer to avoid debt.
  • Clients who work in variable or remote areas.
  • Professionals who want to avoid surprises and extra costs.

What if you combine both options?

Many of our clients opt for a hybrid strategy:

  • They purchase the most commonly used machinery (for example, a basic excavator).
  • They rent complementary equipment for each project (forklifts, dump trucks, platforms, etc.).

This way, they save costs, avoid downtime, and keep their fleet always ready.

What does Makitrucks offer you?

At Makitrucks, we have been advising industry professionals for years.
We offer:

  • Flexible rentals for days, weeks, or months.
  • Fast delivery, guaranteed service, and technical assistance.
  • Constantly updated equipment catalog.
  • Purchase options with customized financing.

If you decide to buy, we’ll help you choose the most suitable and cost-effective equipment.
If you prefer to rent, you’ll have it up and running in the shortest possible time.

Need help deciding?

That’s what we’re here for!
Contact us and tell us about your situation. We’ll analyze your needs and recommend the best solution, no obligation.

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