If you're into construction or farming, you have probably come across tasks that require heavy machinery such as a backhoe. The obvious choice is to buy one, but it's not always the best alternative. Below are considerations for why renting is the better option. 

Scope of Work 

Why do you need a backhoe? Is it for the specialized odd jobs that you get every four months? If you expect to use the backhoe daily, it makes sense to buy one. Once you own a backhoe, it's available when you need it. 

However, before you make that purchase, calculate the cost of owning versus renting a backhoe during the period of use. Take into account the number of hours you'll use the machine every day and week. If it will cost more to own, opt to rent unless you expect similar projects in the future. 

If you're a small company in the construction industry, renting is the most viable alternative. Since your budget will be tighter, it's not financially feasible to buy a backhoe at this stage. You can rent and as your business grows, consider options such as financing. 

Maintenance Costs and Depreciation 

Heavy equipment such as backhoes depreciate rapidly. It's estimated that they lose 20 to 40 percent of their value in the first year. Such machines work in rough conditions, which is why they depreciate faster. 

If you're worried about the depreciation rate, consider buying a used backhoe or renting one. After the first year, the depreciation rate is linear. With this in mind, a used machine would ease your worries. 

Alternatively, you can rent the equipment to eliminate depreciation worries and maintenance costs. When you buy a used or new backhoe, you'll always deal with maintenance. The older the machine is, the more expensive the maintenance will cost. With rented equipment, the rental company handles the repair and maintenance. 

Insurance Costs 

The cost of insuring a backhoe is high, especially when you add that to the purchase and transportation cost. These machines will set you back a couple hundred thousand dollars even before you can use them. 

You can avoid these costs when you rent from rental companies. Unlike you, rental companies own large fleets and can negotiate lower premiums on their machines. You'll still pay the insurance as part of the rental cost, but it's significantly lower than what you'd pay if you owned the backhoe. 

Access to New Machinery 

You can't expect to buy a new backhoe every year, especially if your current machine is running perfectly. However, rental companies need to update their fleet to meet demand and they'll have newer models of popular machinery such as backhoes. 

If you want to test the latest backhoe, your preferred rental company probably owns it. You can rent it for a few jobs and weigh if it's better than the older models. By the time you decide to purchase your own, you'll have tested different brands and made an informed decision. 

Market Testing 

If you're starting out, it's better to test the market before you invest heavily in machinery. Instead of paying $150,000 for a backhoe, why don't you rent it to test the demand for such specialized equipment? 

This will free up capital that you can channel to other projects. Since you can rent, use the opportunity to test which brand loses value faster, wears and tears easily, and can handle your current workload without hiccups. 

Where to Rent Backhoes 

If you're not using a machine for over 70 percent of the time, consider other options such as renting Ever-Joy Rent-All. We're a renowned rental company that has served Detroit and its environs for over 70 years. Contact us today for more details on backhoe rentals.