When acquiring a boom lift, the choice between buying and renting isn’t always straightforward. While ownership might seem like the obvious choice for frequent users, the reality requires a deeper analysis. Let’s explore what factors should influence your decision and help you make the best choice for your business.
Understanding Total Cost of Ownership
Purchasing a boom lift involves more than just the initial price tag. Total ownership costs include regular maintenance, repairs, insurance, storage, and transportation. A new boom lift can range from $40,000 to over $150,000, depending on size and capabilities.
Maintenance costs typically run between 2-3% of the purchase price annually, and that’s assuming proper preventive maintenance. Unexpected repairs can significantly impact your budget and project timelines. You’ll also need secure storage space and a reliable method for transporting the lift between job sites.
Insurance represents another significant expense, with both liability and equipment coverage required. Additionally, you’ll need to maintain operator certifications and training programs for your staff.
Benefits of Buying
Long-term ownership can provide significant advantages for the right business. When you use a boom lift frequently (typically more than 60-70% of working days), ownership often makes financial sense. You’ll have guaranteed equipment availability and can build equity in the machine.
Owning your equipment allows for customization to meet specific project needs. You can install specialized attachments or modify the lift for unique applications. Tax benefits through depreciation can also help offset the initial investment.
Some companies even generate additional revenue by renting their equipment to other contractors during downtime, helping to justify the purchase cost.
Advantages of Renting
Renting offers flexibility and predictable costs. Modern rental fleets provide access to well-maintained, late-model equipment without the long-term commitment. This approach eliminates concerns about storage, maintenance, and obsolescence.
Rental rates typically include maintenance and often basic insurance coverage. When a machine needs repair, rental companies usually provide a replacement quickly, minimizing downtime. You can also match the exact lift to each project’s requirements rather than trying to make a single machine work for every application.
For seasonal work or sporadic projects, renting eliminates the burden of paying for idle equipment. It also allows you to test different models before making a purchase decision.
Making Your Decision
To determine the best option for your situation, consider these key questions:
- How many days per month will you use the lift?
- Do you have consistent long-term projects?
- Can you properly store and maintain the equipment?
- Do you have the capital or financing options for purchase?
- How quickly does technology in your industry change?
Calculate your break-even point by comparing monthly rental costs to total ownership costs spread over the expected life of the machine. Include all operating expenses, maintenance, and eventual resale value in your calculations.
Consider your company’s growth projections. If you expect significant changes in your equipment needs, the flexibility of renting might be more valuable than the potential savings of ownership.
Ready to Make Your Choice?
At Widespread Rentals, we understand this decision impacts your bottom line. Our equipment specialists can help analyze your usage patterns and provide detailed cost comparisons between buying and renting.
Contact our team today to discuss your specific situation. Whether you’re looking for a short-term rental or considering a purchase, we’ll help you find the most cost-effective solution for your business needs. Remember, the best choice isn’t always obvious – let our experience guide your decision.
