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Buying vs. Renting vs. Leasing Used Equipment


What is the Best Option?

When it comes to used heavy equipment like construction, purchasing is not always a good idea. When buying is a big investment, companies can avoid it by leasing or buying the equipment. Depending upon the price and requirement, users decide among buying or renting or leasing.

This post shows how you can determine what the best among these three options is. The comparative study will help you to decide what is best for you. Let us consider the factors like price and operational requirement of used machines in details.

Buying Used Machinery for Everyday Use

When your business is requiring machinery on a daily basis, buying is a better idea. Buying used equipment will save huge costs. At the same time, you should be using the machinery to its full capacity.

However, consider the below factors before buying used heavy machinery:
1.       Space requirement to store the purchased machine
2.       Transporting the machine from the storage area to the site of the job
3.       What will the approximate repair and maintenance cost
4.       What is the expected shelf life of the machinery?
5.       Is the machinery an outdated one?

Look carefully into the above factors and if all the factors are positive, you can decide on buying it. Buying used machine will save huge cost and also give you benefits of ownership.

Leasing Machinery vs. Buying Machinery

If you are not able to buy the machine which you need for everyday use, leasing is the best option. Leasing the equipment is obtaining the machinery on a contract agreement. The agreement is fixed on a monthly rate and a specified term.

When machinery is required on a daily basis, renting it every day can be costly. Cost of a leased machine is cheaper than renting it on per day basis. At the end of the lease agreement, the owner can choose to buy it or renew the agreement. This agreement is also good as the owner get familiar with the behavior of the machine. Leasing is a good way if you want the machine at your place for daily use and also want to avoid huge buying cost.

Leasing has many benefits. User can avoid renewing the agreement if any updated machinery arrives in the market. Leasing also gives many benefits of ownership. User can avoid huge down payments of buying the machine but will incur the interest.

When it is Best to Rent the Used Machine Against Leasing and Buying?

Renting the used machine is the best option when you need the machine only for a specified period. At the same time if you are launching a new product on a trial basis, it is not a good idea to buy or lease the machine.

Renting is the most cost-efficient and smart way when you are not sure how long you will need the machine. Even when you do not have enough storage space and resources to look after the machine, renting is good.

Key benefits of renting the machine-
1.       Avoid huge down payment
2.       No hassles and cost of maintenance and repair
3.       Stop using the machine without any financial losses
4.       Replace the type of machinery you are using whenever you feel
Though renting is cost-efficient and good for short term use, it keeps you on the mercy of the lender. Hence, look into the aspects of every arrangement and determine what is the best for you.

Location: AG Teacher's School Campus, Near Hanuman Temple, Commerce Six Road, Navrangpura, Ahmedabad, Gujarat 380009, India

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