Written by: Bobcat Australia
Posted on: 15 Apr 2020
Topic: General News
Should You Buy or Rent an Excavator?
When deciding whether to buy or rent an excavator, consider two things: What’s the job, and how would the decision affect your cash flow? The most practical job consideration is the scope of work you expect an excavator to perform. If your expected need for the excavator is small, you can’t immediately justify the use of the machine beyond your current contract and you don’t envision it generating revenue on a regular basis in the future, then renting may be the best solution.
If you think you may have use for the machine in the future, but you want to try it first, a rent-to-purchase option (RPO) could be worth considering. RPO agreements allow you to allocate a portion of the rental fee toward buying the machine or return it at the end of the rental period.
Here are three reasons to consider renting a Bobcat Excavator:
An Unusually Big (or Small) Job
Sometimes you take on a job that could be more efficiently done with bigger, smaller or more machines. For example, a 14-ton excavator could be the smallest in your fleet. Then you win a job on a tight jobsite, and you decide a couple of mini excavators could do the job more efficiently. What do you do? If you don’t think there’s a reason to keep the mini excavators in your fleet long-term, then renting could be the best route. This requires a cost-benefit analysis. Consider the cost of renting the mini excavators versus the value of the time saved by renting. That’ll give you a clear answer on whether to rent.
Avoiding Transportation Costs and Headaches
The logistics and costs of transporting equipment to and from a distant jobsite can be made simpler by renting locally. A local dealer will arrange delivery of the equipment and make your job easier.
If you want to do government work, you could need a machine with a Tier 4-compliant engine. If the machines in your fleet are Tier 3 or interim Tier 4, then it may make sense to rent a Tier 4-compliant machine for the duration of the job.
To rent or purchase a Bobcat Excavator for your next job, find and contact your local Bobcat dealer.