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Is it best to purchase or hire heavy machinery?

If you are involved in the construction industry, deciding whether you should purchase a new piece of construction equipment or simply arrange a machine hire in Brighton is a decision that must not be taken lightly. There are a number of factors that should be taken into account before the choice is made.

What is your need?

Companies that are involved in the construction industry suggest that, as a rule of thumb, if a machine is going to be put to use for less than 60 to 70% of the available hours, it should be hired. If your use of the machine exceeds this, then purchasing the equipment will be the best bet. When the rental costs of a machine hire Brighton exceed the cost of a new machine, then it is definitely time to buy.

Although the usage element is important, there are other issues to consider as well. What might be the consequences of not having the machine immediately available? As an example, is it necessary that a service truck be equipped with a welder and/or an air compressor? If the answer is yes and the machine that has failed is important in maintaining the construction schedule, then it behoves you to own the welder or compressor rather than hiring it.

On the other hand, when you work with a modern Machine hire Brighton company, you will be able to hire the newest and best equipment which has advantages. You can hire different equipment made by different manufacturer which will allow you to make comparisons before you buy. Having access to the newest, most modern machines may also help you make a better bid with increased productivity, a reduction in fuel and operating costs and even an improvement in the quality of the work. Hiring is a great way for you to determine payback and on-the-job efficiencies before you make the decision to buy equipment.

If the cost of hiring the machines is very small in comparison to the total job costs, then the “lost profits” are so insignificant that it hardly matters. It is when the cost of machine hire in Brighton gets to be a large portion of the total job cost that the owner of a machine has an advantage.

Tax incentives:

Equipment hire costs can either be charged directly to the client or deducted from taxable income at the year end. Purchasing the same piece of equipment, however, is considered a capital expense which cannot be completely written off in one tax year. The cost of the equipment can be depreciated over either a specified number of years or over the useful life of the machine.

Check the interest rates:

The manufacturers of equipment and the dealers are making every effort to sell the new machines. The offer of low or even zero interest may make the purchase rather than hire more attractive.

 

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