Underground Infrastructure - November 2023 - 29

LEFT: With the versatility mini excavators provide when paired with
different attachments, the equipment can easily be used in multiple
job-site applications, which means the benefits of owning one are
even greater for businesses that do it all.
used, the cost of renting a mini excavator can be significantly
less than the purchase cost - and that translates to thousands
of dollars of savings right from the beginning.
Renting a mini excavator also means there's no need to worry
about insurance costs, interest allocation or the sales tax that
comes with purchasing.
Looking for less commitment. The beauty of renting is that
operators aren't chained down to one machine. Since there's no
long-term commitment involved, rental contractors can change
out machines based on the projects that arise or new configurations
introduced to the market, instead of finding attachments
for their existing fleet or purchasing additional equipment.
Maintenance is a pain point . When renting a mini excavator,
most if not all maintenance and service requirements
typically fall under the responsibility of the rental center. This
means contractors can focus on the job at hand without worrying
about scheduled downtime for servicing. Renting can also
be a benefit if unforeseen challenges arise with the machine
where repairs are needed. Instead, contractors can simply return
the unit and obtain a comparable replacement.
When buying
When renting
Whether it's to save money during a slow economic period
or to increase productivity on a quick-turn project, certain
conditions warrant a strong rental consideration.
It's a short-term task. Assess the utilization needs before
deciding to buy or rent a mini excavator. If this is a short-term
task and the machine won't have many uses afterward, renting
can be a better choice. To better understand what qualifies as a
short-term task, estimate the machine's annual hour usage and
the amount of revenue that it would generate. Is that significantly
less than what it would cost to buy the mini excavator?
If so, renting may be the best option.
Money is tight. Buying any capital equipment requires a
substantial financial investment, so opting to rent provides an
economical alternative for those looking to save on upfront
costs. Depending on the amount of time the equipment will be
Although renting a mini excavator involves less time, upfront
costs and maintenance, purchasing a mini excavator as a longterm
investment is sometimes the better option. With benefits
such as having full control over when the machine is used and
maximizing ROI with different attachments, buying a mini excavator
can be an excellent strategic move for a business - especially
in market conditions with high economic growth.
Future utilization opportunities. Similar to determining
if renting is best, it's important to look at the big picture when
considering buying compact equipment. Buying often comes
with financing payment cycles that can last several years, so
looking ahead at future utilization opportunities is critical to
determining return on investment.
For example, if the monthly bill for the equipment is $1,200
and you'll be working enough billable hours to cover that cost
or more each month, buying is likely the best long-term choice.
More flexibility with scheduling. Contractors that work
in a variety of industries, such as utility work, residential and
commercial construction, roadwork and municipality projects,
should consider buying a mini excavator instead of renting.
With the versatility mini excavators provide when paired
with different attachments, the equipment can easily be used
in multiple job-site applications. This means the benefits of
owning one are even greater for businesses that do it all.
Purchasing also means the machine is available 24/7 -
whenever the contractor needs it. With renting, there's always
a risk that the rental company won't have the right machine
available when it's needed, but those who own their own
UndergroundInfrastructure.com | NOVEMBER 2023 29
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Underground Infrastructure - November 2023

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