Buying Vs Renting Excavator Equipment

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

To Buy or Rent Excavator Equipment?

Assess Your Financial Situation

Is buying cheaper than renting in the long-run? Sometimes, but not always. Many factors come into play, such as how many projects you have lined up, and your ability to consistently pay for maintenance.

Renting definitely makes more sense for a short-term 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 bears the burden of these costs when you rent.

Here is a rule of thumb popular in the construction industry: 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 option, unless you project to use your equipment more than 70% of the time.


Also, 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 Benefits

Most contractors are also unaware that there is a tax incentive 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, on the other hand, is treated as a capital expense come tax time.

Schedule Your Next Rental

Contact Active Excavator Rentals if you secured a project. Learn all about us and why we are a trusted excavation rental service in Monroe. Look up our directions; we're located right off Stevens Pass Hwy. Renting vs buying excavation equipment is a big decision that has enormous impact on your bottom line.

Edited by Justin Vorhees

Excavator Rentals for Seattle Contractors

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