For most companies, especially in the forestry and construction industry, renting heavy machinery is often a better decision than buying. A lot of companies find it unwise to purchase equipment and let it molder in their yard between projects. To find more cost-effective alternatives, companies consider renting equipment and enjoy the amazing benefits.
By renting machinerie on an as-needed basis, companies can usually deduct rental fees right away as a business expense instead of taking the road of depreciation. Also, they can upgrade their equipment every time they want. This means they can always arrive on the job with the best, most energy-efficient, and most capable equipment available. But, renting also comes with risks. Read on to know some of the common mistakes that companies make when renting heavy machinery:
Failing to Read the Contract Thoroughly
As companies rush to cash in on what they see as the benefit of renting heavy equipment instead of buying it, they don’t take time reading the fine print on things such as fuel, delivery charges, and late fees. Also, they don’t understand that rental companies define the word “damage” differently. Companies that have owned their equipment for many years may disregard the dings and scrapes that come with the job. However, rental companies are not always forgiving.
Getting Discounts from the Wrong Rental Company
Rental companies will provide deep discounts on come pieces of equipment to generate business. However, they have usually aged and may have checkered maintenance histories. If a piece of equipment breaks down and everything stops working, you will lose the savings you gained. Thus, keep in mind that discounts are good when there are no traps. Make sure to do business only with a company with an established reputation for renting reliable equipment and offering responsive customer service.
Not Renting Only what you Need
Renting more equipment than what you need to get the job done can have you wasting money. Why not choose a bigger piece of machinery when a smaller one can do the job just fine? Also, renting a front-end loader or mini excavator that is too small for the job and slows the operation down is a waste of money. Thus, you must make careful research before you approach the rental company to procure equipment.
Failing to Consider the Necessity of the Equipment
A lot of companies rent equipment even if they don’t need it for the time being. Do you really need that equipment right now? Or should you focus on other tasks that must be completed first before you will need the equipment? Ensure your worksite timeline and rental timeline are in sync, so you don’t pay for the rent on days the equipment was not used.
