Category: Equipment and Solutions
Rental equipment is a growing option for contractors and companies of every size. Due to the cost of purchasing equipment, as well as the advancement of technology, it’s become a more viable option for construction teams to rent instead of buy when preparing for their next job.
Advantages of Renting Equipment
Renting offers several benefits to you and your company, which include:
- Access to the newest technology. Purchasing equipment is a long-term commitment. While some machines, like a backhoe or forklift, may be ideal to buy because they’re a part of your daily operations, other equipment is more beneficial to rent.By having access to the latest technology, you’re able to take advantage of machines with greater fuel efficiency, which can lower your gas costs. You can also view in-depth log information about its operating times or use software that prevents unauthorized machine use.
- Lower storage, maintenance and repair costs. Owning your equipment makes storage, maintenance and repairs your responsibility, which can become expensive as your hardware ages and needs more service. Rental providers handle the storage, repair and maintenance costs of their equipment. Even if your machine fails during a job, they’ll provide an immediate replacement to prevent project delays.
- Eliminate transportation expenses. Moving your equipment to a work site can become expensive, as well as time-consuming, depending on the distance you’re traveling. Travel times can extend your project’s duration and delay its start, which prevents you from beginning your next job.Rental equipment is delivered to your job site. Finding a Cat® rental dealer near your work site is easy due to the extensive network across the U.S., which ensures your machines are delivered on time so you can begin your project.
- Accept specialized projects. Expanding on your services is an immense benefit of rental equipment. Many contractors are unable to take specialized projects because they don’t own — and can’t justify purchasing — the necessary machines to complete the job.
Providers of rental equipment allow you to accept new, specialized projects by offering the equipment you need. Taking on complex projects can also increase your overall profits due to their requirements and a limited pool of bidders for the job. Some contractors even offset their rental cost for these projects by incorporating their rental expenses into their client’s invoice or initial bid.
- Make tax deductions. Construction equipment purchases are tax deductible, but they’re depreciated over time, which can lower your tax return. Rental equipment is an immediate deduction, which can increase your return. Leased equipment offers similar tax benefits, such as a $500,000 deduction.
Preserve borrowing and purchasing power. Lowering your business’ liability and expenses is essential to maintaining your financing power. Due to the low cost of rentals, in comparison to monthly loan payments, you’re able to increase your purchasing power by making more capital available.
Unexpected costs, such as repairs, can force you to obtain a loan and rely on your borrowing power. While existing loans, such as for an equipment purchase, can limit your borrowing ability, renting equipment doesn’t affect it.
Renting construction equipment provides companies and contractors with versatility. You can choose projects without being limited by the equipment you own and access a variety of machines that meet different job needs. It expands your capabilities without increasing your overall expenses.
Cat Rental Equipment at NMC
As a Cat dealer, we offer a wide selection of Cat rental products. Our Cat machines include attachments for compact equipment as well as hauling systems, track type tractors, telehandlers and more to meet the needs of different projects.
Learn more about our rental equipment and services by contacting us today for more information.