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.
Before going into details, it’s essential to clarify what each option entails:
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.
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.
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.
Practical tip:
In demanding work environments, breakdowns are inevitable. When you rent, you’re protected. When you own, you’re responsible.
This is something that’s often overlooked:
With rental, the machine arrives when you need it and is removed when you’re done. Zero worries.
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:
…the ability to adapt quickly is key to competing.
Technology advances. Models improve. Environmental regulations change.
Over time, your own machine may become obsolete or less efficient.
Advantages of renting at this point:
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) |
Ideal for purchase:
Ideal for rental:
Many of our clients opt for a hybrid strategy:
This way, they save costs, avoid downtime, and keep their fleet always ready.
At Makitrucks, we have been advising industry professionals for years.
We offer:
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.
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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