Buying or Renting Your Construction Cranes - Which Is the Better Option?
Posted on: 1 February 2016
The inevitable question that crops up in your construction business is whether you should purchase or hire your next crane. Naturally, there are many pros and cons for either scenario. This quick guide will help you weigh up the issues and make the best decision for your business.
Considerations for Purchasing a New Crane
When thinking a buying a new crane, focus on the future forecast for your company rather than the particular project for which the crane will first be used.
If you are able to predict that the crane will have a considerably long and full workload for many years into the future, opting to buy it outright is a sound choice.
A long life span allows for a high rate of return from the crane, as the initial purchase cost can be broken down compared to the number of jobs it works on over the years. Your asset provides a great investment for the business.
When Purchasing a Used Crane Is Best
If you cannot see a constant workload over the long term, and foresee that the crane will be used for only a few years, choosing a used crane is the better option.
When searching cranes for sale, look for models that are only a few years old. They will still be at their peak performance capability, but in less demand because newer models will have been released. The price point drops considerably on previous models when they are replaced by new ones.
A used crane usually works out to be more economical than hiring one for longer periods. When you have finished with it, reselling will enable you to gain back some of the investment capital that you have spent on your purchase
Whether you decide to buy a new or used crane, you need to also take account of the following.
When buying a crane, you are then solely responsible for its maintenance and replacements parts once out of warranty. Alternatively, when renting a crane, the company usually includes servicing and parts replacement in the contract.
This, of course, depends on it being properly used and maintained, within the terms of the contract. For example, you need to ensure that there is no overloading or tinkering, and the equipment must be operated by suitably qualified and trained personnel at all times.
A considerable advantage when you own your equipment is that it is often quite practical to rent out some of your machines that are not currently in use. This provides an additional income source during the downtime of your assets.
When Renting Is The Best Option
The case for renting comes to the fore in some particular scenarios.
When you cannot foresee any more than a few future projects' worth of work for the crane, it is not worth the effort and time needed to buy a new or used one. Additionally, the servicing and maintenance is not economically viable over the short term. A rental contract will cover these for the extent of your project requirements.
At times, there are lucrative and unique projects that are worth pursuing. For example, you may need a particularly heavy duty crane, or a small and versatile crawler machine to gain access in a tightly restricted site.
If you decide to hire your crane, it is naturally vital to deal with a company that has the best possible reputation and experience in the business. There are also some legal points to consider.
Safety in the construction industry is a number one priority. When heavy duty equipment is involved, great care is required to ensure the safety of workers as well as the personnel and visitors over the entire site.
Look for a company that can not only offer competitive pricing but is also right on top of all the latest safety regulations and industry legislation. This is so important in the constantly growing and changing world of construction.
For more information, contact a local crane rental company or dealership like Freo Group.
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