Ownership is a huge responsibility to the owner. If the machine breaks down, the owner will immediately have to incur expenses to pay for the machine to be serviced and may need to rent another compressor until his piece of equipment becomes fully operational again. Also, the owner has to pay for replacement parts, filters, etc. These are of course obvious disadvantages of buying vs. renting.
Let’s go a little deeper on comparing the real costs incurred of rent vs. buying, because it is not all about handling less hassle.
There are definitely real cost advantages to renting and some of them are hidden or are not that obvious.
Buying can lead to high costs in three areas:
- Visible costs include the investment price, interest rates, ordinary repair and maintenance, insurance and fuel.
- Hidden costs namely logistics, safety, administration and dedicated technical people.
- Unpredictable costs could include extraordinary maintenance or fuel price fluctuations, legislation changes and production changes.
Rental on the other hand will allow you to control expenses, conserve capital and receive fiscal benefits while still getting the latest, top quality equipment that is well maintained and safe.
10 great reasons to rent*:
- Save money and improve the bottom line: long-term renting provides significant financial advantages over buying and avoids having to spend money to prepare, advertise and sell used equipment.
- Regulate the inventory: You can get the equipment you need when you need it and keep your equipment inventory to a minimum.
- Get the right equipment: Get the most up to date equipment that fits your specific needs to do the job cost-effectively and safely.
- Receive 24/7 support: Contact dedicated support representatives day or night to resolve any issues.
- Save space: Make significant savings in space and costs by eliminating the need for storage and warehousing.
- Reduce downtime: If equipment breaks down, the rental company will deal with it quickly and efficiently to keep your crew working with minimum interruptions.
- Avoid costly repairs and maintenance: The rental company takes care of the maintenance, so you won’t need a repair shop, spare parts inventory or mechanics.
- Control your costs: Simplify your bidding and billing. You have one monthly invoice and only one accountable cost – the rental. The equipment is insured against theft, fire and other potential damages.
- Reduce administration: Save time and gain peace of mind thanks to easier licensing, less paperwork and reduced registration costs.
- Conserve your capital: Use it for other, potentially more profitable, ventures.
*Disclaimer: Some compressor rental companies might not be able to provide all the advantages listed above. This text is based on the Atlas Copco Rental experience.