Owned Equipment costs many times it's purchase price
12 sound reasons why you should rent your equipment
1. Maintenance - Equipment rented on a day to day basis includes full maintenance.
2. Breakdown - When rented equipment breaks down, it can be replaced with a minimum amount of down time.
3. Warehousing - Rental Equipment does not require any storage space from the user, reducing overhead.
4. Cost Control - It is difficult to know the true cost of the use of owned equipment. Rented equipment offers just one accountable cost figure.
5. Inventory Control - The presence of continuous billing on a rented item tends to establish accountability for that item. Contractors, in particular often find that they have less inventory loss due to pilferage when equipment is rented rather than owned.
6. Disposal Costs - It costs money to sell any type of used or obsolete equipment. Preparation for sale, advertising, and selling time are cost factors of ownership that do not occur in renting.
7. Obsolescence - Ownership involves the risks of being handicapped with equipment that is not as well suited to a job as newer, updated equipment.
8. Correct Equipment for the Job - Ownership often forces another kind of inefficiency through the use of the wrong size or type equipment for a given job. This can mean additional hidden costs. Renting assures the right tool for the job.
9. Minimum Equipment for the Job- When ownership of basic equipment only is combined with rental as needed, idle time of equipment is minimized.
10. Personal Property Taxes and Licenses - There are no personal property taxes or license costs for the user of rented equipment.
11. Conservation of Capital - Renting frees capital for other, potentially more profitable used than that of being tied up in equipment.
12. Increases Borrowing Capacity - The equipment user that rents rather than buys generally finds borrowing easier because he has a better ratio of assets to liabilities.