Buying Vs Renting Excavator Equipment

renting excavatorAs a construction contractor, you have to decide between buying and renting an excavator. Of course, we have a bias towards renting given that we rent out excavation equipment, such as breakers and ho packs. Even so, we will point out the pros and cons of each.

To Buy or Rent Excavator Equipment?

Know Your Financial Situation

Is buying cheaper than renting in the long-run? It can be, but not always. Many variables are at play, such as how many projects you have secured, and your ability to consistently pay for equipment maintenance.

Renting definitely makes more sense for a short-term, seasonal, or one-off job. If you foresee consistent projects ahead, then buying may be more cost-effective in the long-run. However, you also have to consider ownership costs, such as maintenance, repairs, insurance, license fees, etc. The rental company foots these costs when you rent.

Here is some food for thought to consider: generally, a piece of equipment is NOT making you money if you're not using it at least during 60% to 70% of your working hours. Renting is the better choice unless you consistently use your equipment more than 70% of the time.


Do you have the storage space for keeping large construction equipment? You may have to rent space, thus adding to your monthly ownership cost.

Tax Incentive

Most contractors are unaware that there is a tax benefit that comes with renting. When you rent, you can have some of the cost deducted as a business expense or even bill the rental expense back to the customer. Owned equipment, by contrast, is treated as a capital expense come tax time.

Rent an Excavator for Your Next Contracted Project

Contact Active Excavator Rentals if you secured a project. Learn all about us and why we’re a trusted excavation rental service in Monroe. Look up our directions; we're located right off Stevens Pass Hwy. Deciding between buying or renting an excavator has a tremendous impact on your bottom line; choose wisely.

Excavator Rentals for Seattle Contractors

Serving Monroe, Anacortes, Arlington, Bellingham, Bothell, Burlington, Mt. Vernon, Stanwood, Sedro-Woolley, Marysville, Granite Falls, Everett, Mukilteo, Edmonds, Snohomish, Lynnwood, Woodinville, Mountlake Terrace, Mill Creek, Shoreline, Seattle, Redmond, Woodinville, Bellevue, Sammamish, Issaquah, Renton, Kent, Des Moines, Fife, Tacoma, Milton, Puyallup, Bonney Lake, Auburn, Covington, Maple Valley, Burien, Tukwila, Olympia, Lakewood, Lacey, Kenmore

Posted on March 30, 2020 | Published by Ignite Local | Related Local Business