You have some projects underway. It is either you gear up and buy your own equipment, extend your company’s capabilities and add them these equipment to your business’ asset or you just need to rent a unit and cut the cost. How do you decide when to buy and rent the equipment anyway?

1. Cedar Capital Group Tokyo: Owning vs
Renting Heavy Equipment
You have some projects underway. It is either you gear up and buy your own
equipment, extend your company’s capabilities and add them these equipment to
your business’ asset or you just need to rent a unit and cut the cost. How do you
decide when to buy and rent the equipment anyway?
We have learned a lot of pros and cons of renting and buying. It is important to
evaluate your company’s current situation and capabilities including your financial
plans to carefully consider which method you will use in acquiring the equipment.
Here is a review of the things which you should bear in mind before deciding when
to buy and when to rent equipment:
1. Budget
The budget is one of the most important factors in any start of the business. Do
you have enough capital to buy a new equipment? If so, will it be practical to use
that money to buy or is it more rational to rent and save the cost? You should not
look only on the first few months of operation but foresee the future need of the
equipment to be used. Although buying may be a larger one-time financial outlay,
the cost of renting can add up quickly, and over a long period of time can end up
costing you more – especially if the equipment isn’t being used for the entire rental
period. And don’t forget: when you own, you can see a return on your investment
when you sell.

2. 2. Duration of Project
Time frame is important to know how long you will need the equipment. It is more
practical to rent the machine if you are only using it for a short period of time.
Renting also makes more sense if you are using the equipment for only a specific
task. The risk, of course, is the increasing cost of rental when the equipment is not
used the entire time. Fortunately, many rental companies in Singapore, Tokyo,
Japan and Seoul South Korea only require payment for the actual time the machine
is being used.
On the other hand, if you are working on a long project and would be using the
machine frequently, it is more advisable to buy your own equipment. The
complaints on damage on the parts of the equipment can still be charged on you if
you are renting it. It becomes worse if you wear the machine out so it would be
better if you purchase your own.
-Read more at: Cedar Capital Group Tokyo