Why buy equipment when you can hire locally?

In most cases, for a new or growing business, it makes sense to hire the equipment you need. Unless you’re going to need a piece of equipment regularly and your business growth is guaranteed, the benefits of hiring equipment rather than buying usually add up. Here’s a few of the key benefits to consider when you’re making a decision on whether to hire or buy.

How easily can I predict what equipment I need for my business?

As your business grows and evolves, you will attract new customers and different types of work. Often specialised equipment can make a job much easier – from the right attachment for a digger to the correct model of roller for the surface you’re working with.

Hiring equipment gives you the flexibility to always access the right tool for the job, making delivering the best, most cost effective, result much easier. Investing in machines means making sure they’re being put to work enough to deliver a return. If the equipment you need is likely to vary, it could be worth hiring rather than making a purchase.

What are the maintenance costs for a digger or other equipment?

A small digger being serviced by a service technician.

If your decision to invest comes from needing your equipment regularly, it’s important to protect its availability with the right maintenance programme. Regular checks and maintenance before you operate your equipment, the right storage facilities, regular servicing and replacement of parts as they’re required: these are all an important part of owning your own equipment.

Hiring equipment takes the maintenance hassle out of the equation. Your hire company will take responsibility for maintenance and servicing, so all you need to do is pick up your equipment and drive your hire to the job. That means you don’t need to suffer the cost or the downtime from getting things fixed or serviced. But it is a good idea to find a hire company you can rely on to look after their equipment well.

How much does it cost to buy the latest digger model?

Late model diggers don’t just look good – they’re also packed full of the latest features including new technology, operator comfort and advancements in power.

When you imagine buying your own equipment – you’re probably thinking of how nice it would be to drive the latest model off the lot, and all the technology and smart controls that come with it. Unfortunately a new machine is a much bigger investment than second-hand so it’s usually much more cost-effective to purchase pre-owned equipment. Secondhand equipment often comes with its own set of maintenance costs and challenges.

When you hire with Allways Hire you enjoy access to a new fleet of machines that’s regularly updated with the latest models. That means you never have to drive a piece of old kit out onto a job. New equipment isn’t just excellent for reliability, it’s also good for your business reputation. Customers enjoy knowing that the contractor they hire has equipment that looks like it’s in great condition and can certainly be relied on to tackle the job on hand.

How quickly does construction or roading equipment depreciate in value?

Wear and tear can happen quickly even for new machines like this small digger that has lost some of the paint on its blade.

According to the IRD Depreciation Rate calculator, a mini digger depreciates in value at a rate of 16% (diminishing value) or 10.5% (straight line value) per year. If you’re putting your cash into an expensive asset, like machinery, it’s important to remember that the value of that equipment can depreciate rapidly – especially if it’s getting lots of use and suffering from wear and tear.

Hiring is a good way of managing your expenditure without discovering you have an asset on your hands that’s dropped in value and no one wants to buy at the end of the job.

Can I control my business costs by hiring equipment?

Idle equipment is a cost you need to carry as a business, whether you have a job booked or not. Hiring equipment as you need it for a job means you don’t have to deal with a cost unless you have a stream of income guaranteed against it.

Keeping control of your costs is important in an uncertain economy or if you’re not sure how stable the pipeline of work ahead of you may be. If you suddenly discover the nature of your work changes or there’s not as much demand as you thought there would be – hiring can ensure that you won’t be stuck with the cost of a piece of equipment you don’t need.

What storage do I need for construction/roading equipment?

If you do invest in equipment; it’s important to make sure you’re storing it well to protect your investment. Storage for many types of equipment needs to be dry, and it always needs to be secure. It’s also important to consider the location of your storage as you will need to control transportation costs and make sure you can access your equipment easily.

The great benefit of hiring equipment is that you don’t need to provide long term storage. Hire companies like Allways Hire invest time and effort in making sure it’s easy for you to get your hire equipment from their yard to your worksite. From custom-made trailers to getting it transported by Allways Hire – hiring equipment doesn’t need to mean you don’t have it close at hand when you need it.

To hire or to buy – which works best?

Choosing whether to hire or buy equipment for your business depends on your circumstances and balancing the costs. If you do need to hire, Allways Hire can be relied upon to provide you with access to a young, reliable fleet of machines that are fully serviced and ready to hire, and available to pick up from either our Hastings or Napier branches.

Call us today on 06 872 6774 or email info@allwayshire.co.nz and we can help you find the right equipment for your next job and the best way to get it to your worksite.