Why Buying Used Rental Equipment is a Good Move？
Purchasing used rental machinery can be a beneficial decision for your company when you find that your rental equipment is being used more than you expected. Rather than continuing to rent equipment that you use every day, you can save money by choosing to invest in owning the equipment. There are even more advantages to buying rental equipment that your company should consider to ensure that you are set up for future success.
Learn more about why buying previously rented construction equipment is a good idea, and the benefits you can gain from buying reliable used equipment.
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When should you buy used rental equipment?
It is normal to rent equipment when a company does not plan to use the machine more than 40% of the time. The basic idea is that if your company does not use the equipment often, it does not make sense to make a large purchase and incur the long-term payments and costs associated with owning the machine. In situations where you do not use the equipment often, the short-term commitment and lower costs offered by rental equipment make it a more attractive option.
Sometimes companies start renting equipment because they do not know how often they will use it, or if their future projects will rely on the equipment. Over time, they may find that they use the rental equipment much more than they initially expected. If the equipment is being used at more than 40% and the company expects to continue using it regularly, it is usually time to purchase used rental equipment.
Why is buying a used rental machine a good idea?
If you are wondering if you can buy a used skid steer for rent, the answer is probably yes. Rental equipment, from skid steers to excavators, can be an excellent investment for your company. Buying a rental has many advantages, such as saving on purchase costs and giving you the peace of mind that you are purchasing high-quality equipment. You can also benefit from the operator's familiarity with the machine, a wide range of equipment to choose from, and maintenance history.
Learn more about the many advantages you can gain from buying rental equipment:
1. Savings
If you use your rental equipment more than 40% of the time, you may want to consider switching from leasing to buying. Over time, you may notice that you rely on your rental equipment more than you planned. It is important to remember that the longer you rent, the more you pay in total expenses. Over time, you may end up paying more in rentals than if you had purchased the equipment earlier.
By buying the equipment, you can recoup your money over the long term and sell the equipment once you are ready to upgrade or replace it. Instead of incurring expenses in the form of rental costs, you will acquire an asset that you can resell or customize at your leisure.
In addition to the money you can save by buying, you can also save on the cost of buying by using a previous rental. Since rental companies tend to buy equipment wholesale from manufacturers, you can often get some great deals on used construction equipment. By buying wholesale, they will often purchase equipment at below market value. These cost savings can be passed on to customers, helping you find quality used construction equipment at a lower cost.
2. No Guesswork on Quality
There is another great advantage to buying rental equipment that you have previously used on a job site as a rental. Since you have used the equipment in the past, you will know its quality and the performance it regularly delivers. Even if you haven’t used the equipment directly, a reliable rental equipment dealer will perform all the necessary maintenance on the equipment to ensure it is still operating at a high level at the point of sale.
It is also common practice for rental companies to retire machines while they are still young. This practice of early retirement means that you can still get fairly new equipment that has been well cared for during its use. If you wish, you can also find equipment with advanced technology and features that can increase the efficiency and productivity of the machine.
3. Wide Selection of Rental Equipment
Part of the appeal of a rental company is the large selection of equipment that its customers can choose from. Just like a wide variety of rentals, you can also expect to receive a similarly sized inventory that you can choose from when you purchase. The wide selection you receive when purchasing rental equipment means that you can find a machine that fits your company's needs and the type of work you plan to use it for.
4. Service and Repair History
Rental companies want their equipment to run optimally. Their customers rely on high-quality equipment that delivers on its promises and is reliable. Rental companies that fail to provide equipment that meets these expectations are doomed to fail.
Since rental companies need to provide their customers with well-maintained and high-performing equipment, reputable dealers have a long history of preparing and servicing their equipment. The benefit of buying a piece of rental equipment is that it increases the likelihood that the machine has been properly maintained. In addition, a good dealer will provide you with service records as proof of regular inspections, oil changes, hours of use, and any other repairs.
5. More Familiarity with the Machinery
When you purchase rental equipment that your company already uses, your operators will already know how to use the machine. This familiarity with the equipment saves time because you don't have to schedule training for your operators on how to use it. As a result, you can deploy the equipment to the job site immediately.
Things to Consider When Purchasing Previously Leased Equipment
When you purchase used equipment for your business, you want to choose a machine that you can use for a long time. The following tips can help you determine if a previously leased machine is worth the investment.
Choose a Trustworthy Seller
When purchasing used leased equipment, it is vital to go to a reputable dealer or rental equipment company. A reliable dealer can help you avoid the risk of accidentally purchasing damaged equipment. They can also give you recommendations on the right machine for you.
Reading testimonials is a good way to gauge if a seller is reliable. Try to find information about past customers and their experiences, if any. Consider what industries the rental company has experience in to determine if they are familiar with your specific needs.
Check the History of the Equipment
Investigating the past of a machine can reveal if the purchase is worth the money. First, make sure it is not a stolen device by taking the PIN and product ID number to your local police station. You can also use online services such as the National Equipment Registry.
If there are any liens against the equipment, you may run into ownership issues. You can check if the machine has an active lien by looking up a financing statement from the Uniform Commercial Code. Equipment may have a history of liens, but you want to be careful of any that are currently active.
Make sure the equipment has not been seized – Equipment is often seized because the buyer cannot pay in full, which can also be a sign that they have not properly maintained the machine.
You should also ask about the machine’s maintenance history. A well-maintained used machine may provide higher performance than a poorly maintained machine, even if it has been documented for longer.
Perform an on-site inspection
It is crucial to thoroughly inspect used equipment before purchasing to ensure you know what you are buying.
Make sure the condition of the equipment matches the description in the sales listing. If you notice signs of wear and tear that the seller does not mention in the listing, skip the purchase. Minor wear and tear itself is not a problem, but discrepancies may indicate that the seller is not trustworthy, which can lead to further trouble.
Be sure to check the following systems and components for damage, unusual wear, or contamination:
·Hydraulic hoses
·Tracks or tires
·Fluid levels
·Air filters
·Engine filters
·Undercar gear
·Brakes
If you can, take the equipment for a test drive. Doing so will give you the best idea of how it will operate on your site. Check that the engine runs smoothly, with no unusual noises or exhaust, and make sure the machine starts and stops as expected.
If you are unsure of your ability to judge the condition of the equipment, take a trusted technician or other expert with you. They can help you determine if it is good used construction equipment or if you should explore other options.
If you have already rented the equipment yourself, you are already familiar with it. Before deciding to buy the machine you rent, discuss its condition with any workers who operate it. If they report any problems, consider testing and buying other equipment that you have previously rented.
