Is Renting A Backhoe More Cost-Effective Than Buying
Category: Equipment and Solutions
Heavy equipment like backhoe loaders provides an invaluable service to contractors and operators alike. It makes short work of projects of all sizes, so it’s no wonder heavy equipment has become an essential tool in many industries, from agriculture and landscaping to construction and roadwork.
When deciding whether it’s better to rent or buy equipment, each option has its appeal. However, the flexibility of rentals makes backhoes readily available to contractors and operators as needed. Renting a backhoe loader is a cost-effective option that can provide significant savings while giving you the high performance you need.
Backhoe Rentals vs. Buying
Is a backhoe a good investment? Backhoe loaders provide enormous benefits for projects of any size. Their versatility and power make them useful for tasks like:
- Trenching and digging holes
- Digging up roots, trees, rocks and foundations
- Transporting materials
- Loading trucks with fill and other materials
- Aiding in construction by lifting large, heavy materials
However, buying a backhoe loader costs between $15,000 and $150,000. For most contractors or do-it-yourselfers, these upfront costs, combined with incidental expenses, add up quickly. The initial purchase price can be too high to justify the limited amount of work people might need a backhoe loader for.
This is where renting heavy equipment becomes a price-effective option. The costs associated with renting are a fraction of the cost of purchasing. Renting also comes with an array of benefits, including:
- Convenient contract durations
- Equipment transportation
- Equipment inspection and maintenance
Benefits of Backhoe Rentals
The perks of renting a backhoe loader make it an ideal choice for any business with immediate, short-term equipment needs.
1. No Upfront Costs
Upfront costs when purchasing new equipment can be a staggering barrier to entry for contractors. Large equipment such as backhoes, tractors and loaders come with significant upfront costs that involve expenses like:
- Large initial deposit or down payment
- Investment in maintenance tools
- Securing a storage location in a safe structure
- Investment in a trailer or hauling equipment
It may seem like a good investment to buy your own backhoe, but when factoring in all the initial costs to get started, it’s often not the most financially ideal situation for small businesses and independent contractors. By renting equipment, you eliminate the initial purchase cost, reserving capital for other business expenditures.
How many hours does a backhoe last? The service life of a backhoe loader depends on how well it’s been maintained. Equipment rental providers perform 100% of the maintenance when you rent, saving you the investment in the tools, time and effort it takes to repair and maintain the equipment. Depending on your work locations, owning your equipment also requires both a secure storage location and the means to transport the equipment to and from your home base.
Property, facility and transportation costs can become enormous when purchasing equipment. When renting, the rental service provider takes care of the secure storage and transportation. You can simply call the rental provider and request that equipment be delivered to your site or moved to another, rather than moving it yourself.
2. No Ongoing Maintenance Expenses
Maintenance is critical to extending equipment’s life span and ensuring it operates the way it’s intended. Service technicians highly recommend implementing a scheduled maintenance plan for equipment.
Scheduled maintenance plans ensure routine inspections, repairs and part replacements are performed at the manufacturer-recommended equipment operating hours. These maintenance plans include thorough daily equipment inspection to ensure all structural elements are free from defects. Rental dealers also ensure all electronics and control systems work the way they should and that the equipment is ready to perform its tasks without breakdown or delays.
Inspections, repairs and part replacements must be performed by competent technicians who are trained in how the equipment functions and how to perform repairs.
When renting equipment, the responsibility of learning how the systems work in a piece of equipment rests on the rental service provider. Similarly, the inspections are performed before you receive your equipment, meaning equipment is ready to work as soon as it arrives. If a breakdown does occur, the rental service provider can be on-site promptly to repair the equipment or swap it out for a new one.
Support from a reliable rental provider can save you time, money and energy — all of which could be better spent fulfilling new projects and serving clients.
3. No Insurance Fees
When purchasing an expensive piece of equipment, it’s recommended to buy insurance to cover the cost of repairs. Larger equipment such as backhoes or loaders is vital for contractors to perform their tasks and must always be available and ready to work. The repair costs to get equipment up and running can be staggering, which is why insurance is such an essential investment.
When renting equipment, insurance costs are included in the rental. You get reliable, ready-to-work equipment without the added costs of associated with maintaining and repairing it.
4. No Storage Costs
Backhoe loaders are large, valuable investments that require 24/7 protection from vandalism and theft. When owning equipment, you need to make sure your assets are protected at all times because you are responsible for them.
When renting equipment, the rental service provider is responsible for ensuring the equipment is adequately stored and protected. The cost of storage facilities and security systems falls on them and saves you the added expense of protecting the equipment.
Choosing a Backhoe Loader
There are several points to consider when choosing a backhoe loader to rent, including:
- Project size and scope: The first consideration when renting a backhoe loader is selecting the right piece of equipment for your project or tasks. Smaller jobs generally require smaller equipment in size and power, while larger jobs require bigger equipment with more power. Always be aware of your size and dimension limitations when selecting equipment.
- Contract length and terms: Reputable rental services provide flexible contract options capable of fitting any project need. For example, NMC The Cat® Rental Store offers the Cat 420F2/420F2 IT backhoe loader — a smartly sized loader capable of a wide range of workloads. How much a backhoe rental costs depends on the contract length. We offer a range of flexible contract terms and rates for this loader, including daily, weekly and monthly pricing.
- Equipment availability: The last consideration is the availability of equipment. NMC The Cat Rental Store offers many service locations with a wide array of equipment options. Thanks to the extensive Cat Dealer Network, we can acquire the specific equipment size and model you need when you need it.
Always consult an equipment rental specialist and explain your project needs before committing to buying or renting a piece of equipment. Equipment specialists have extensive knowledge that can save you time and money by selecting the right equipment for your project.
Choose NMC The Cat® Rental Store for Quality Backhoe Rentals
Where can you rent a backhoe loader? NMC The Cat Rental Store has multiple locations across Nebraska and Iowa, and we’re always ready with the right equipment when you need it. NMC The Cat Rental Store customer service representatives can help you select the right size and model of backhoe loader for your project needs. In addition to backhoe loaders and other Cat earthmoving equipment, you’ll find a range of equipment work tools to improve your equipment’s versatility and efficiency.
For reliable, high-quality Cat rental equipment, choose NMC The Cat Rental Store. Browse our inventory of Cat equipment today or contact us for more information. Call 855-NMC-RENT to speak to a representative.