BK Blog Post
In these times where budgets are tight and businesses are more conscious of their spending, the decision to hire machinery and equipment or to buy it outright is one that many are being forced to make. Do you spend potentially thousands for a machine that might become unneeded in the future, or do you hire and pay less in the short term, knowing that once something better comes along you can upgrade with little to no hassle? This article takes a look at the pros and cons of purchasing and renting gantry cranes for factories and industrial worksites across Victoria.
Your Current Financial Standing
Your financial capital (or lack of) is going to dictate just what you can and can’t do. Weigh up whether or not the larger financial outlay of an upfront purchase will be better for you than a rental or rent to buy agreement. While the latter won’t cost as much initially, the cost will certainly add up over time. Should you choose to buy outright but still want to save on the cost of a large outright purchase, you could consider buying a superior quality second hand gantry crane, or go onto a structured payment plan.
The Cost of Purchasing vs. Renting
Beyond the initial spend to acquire your gantry cranes, whether by purchase or rental, it’s also important to consider the additional costs that might be involved as well, as these could influence your decision as to which option to choose. The purchase of gantry cranes can incur insurance costs, maintenance and operational costs, and other fees and charges, whereas all additional rental costs will largely be incorporated into the regular figure that you pay.
How Long is the Project, or How Frequently Will You Need the Crane?
It’s important to consider how much use the crane will be getting, as that can greatly influence your decision. If it’s a one-off project and the crane isn’t likely to get more than two weeks of use, it makes little sense to buy. However, if it’s a six month project and the crane will be getting daily use, or if the gantry crane will be required for future projects, then it certainly makes sense to purchase outright.
There are many other factors to consider as well, for example equipment availability and fleet management, but to summarise the advantages of each option, purchasing is cheaper in the long term, you can possibly get a return on your investment when you no longer need it, and there are possible tax incentives to owning your gantry cranes. On the rental side, there is a much lower initial outlay, you’re more likely to get the latest equipment, and all maintenance is taken care of for you by another party so you don’t need to worry about it. All in all, it’s recommended that you do your own research, consider which advantages most suit you, and base your decision on your findings.