The key to running a successful construction company is equipment. The question is, should I rent or buy heavy equipment?

Here are several great reasons to rent vs. buying.

  • The opportunity to try newer models
  • Depreciation costs
  • Insurance costs
  • Maintenance fees
  • Availability
  • Tax advantages
  • Try new opportunities
  • Transportation costs
  • Compliance issues

In this article, our main focus is on the advantages of renting heavy equipment. Whether you’ve recently won a bid on a significant project, or you want to expand your horizon with some new opportunities. Knowing when to rent vs. buying can have a considerable impac on your business.

Deciding to make a significant purchase at the wrong time can put you in a cash flow crunch, always run your numbers and consider all options and benefits of renting vs. buying. Here are a few of the pros of renting equipment.

The latest and best

Obsolete? Not when it comes to rentals. Offering up-to-date equipment is the competitive edge that keeps rental companies in the business.

Construction companies that prefer to rent heavy equipment expect newer machines so they can work more efficiently and worry-free.

Depreciation – does it apply to rentals?

There is no need to be concerned about depreciation when you rent heavy equipment. You can deduct rental payments as a business expense, adding additional cost savings to your business.

When you rent, you eliminate all worries about wear and tear of the equipment and just how fast it can lose resale value. The value of all machinery depreciates quickly from year to year, and if you want to purchase the latest model equipment, you risk losing trade-in or resale value when you are ready to upgrade.

Maintenance costs

Breakdowns? Yes, this can happen when you own, as well as when you rent heavy equipment. Are you prepared for unplanned repair costs and downtime? How about maintenance and hefty shop expenses?

Worry-free maintenance? Yes, rental companies handle all repairs and maintenance. Most rental companies include these costs as part of the rental rate.

New opportunities

Do you have your eye on a new specialized piece of equipment? Looking to expand your company? Buying equipment might not be economically viable at this time. However, a rental could help you develop and test the waters without a considerable investment. Renting equipment can free up available capital to pursue other opportunities.

Transportation costs

Moving your equipment from job site to job site can be time-consuming and costly. When you rent heavy machinery, you can have the equipment delivered to your job, fueled, and ready to go.


High premiums? The cost of buying insurance for heavy equipment can be a considerable expense. Rental companies can have more negotiation power when it comes to insurance costs and can pass the savings on to you. When you rent the equipment, you can have the insurance costs bundled into the package rate, making it easier to track and monitor expenses.

Compliance issues

Managing compliance can be time-consuming, costly, and a real hassle for your company. If you are negligent in this part of your business, you can almost guarantee additional costs cutting into your bottom line.

When you rent equipment, you can count on the rental company to make sure that it will meet all the right standards. It’s like having a team of compliance experts.


With our article focused mainly on renting vs. buying, you may wonder if buying is even an option. There has always been a general rule of thumb that if you are not using your equipment more than 64 percent of the time, you should consider renting.

Beyond the obvious considerations when deciding to rent vs. purchasing equipment, keep in mind such things as safety, efficiency, morale, employee retention, growth, and business risks. It’s not always about the hard numbers when it comes to making the right decisions for your business.

Different rent or buy decisions vary by company types and needs. If you have some excellent tips for buying or some additional reasons for renting, we’d love to hear from you. Please share your experience, resources, and suggestions in the comments below.

Impac Fleet offers fleet fuel cardstelematics, and world-class customer service. To get a complimentary demo of our fuel card program and GPS solutions, call us directly at (281) 445-1100 or click here to request a demo.

Disclaimer: The content and information provided in this article is for informational and educational purposes only and does not constitute financial, business, or legal advice. Always contact a professional for your specific needs and circumstances before making any legitimate, business, tax-related, or professional business decisions.