Hiring vs Buying Construction Equipment

Yellow digger and orange loader on job site

What are the benefits of buying vs hiring construction equipment and machinery? You might be surprised how these two options stack up—if you’re looking to hire a trencher, or buy a forklift, depending on the details, you might actually want to buy the trencher, or hire the forklift. In this blog post, we’re discussing the benefits that a contractor should be considering when deciding whether to make a purchase or hire equipment, and when the right time is for each.

Pros of Hiring

1. Affordability

Construction equipment isn’t cheap and for most contractors making the decision to purchase heavy duty equipment is a major investment. For instance, the price of a loader typically ranges between $50,000 to $130,000, while a good rough terrain forklift can cost anywhere between $15,000 and $85,000. If you’re a contractor planning to purchase equipment or machinery on a loan, it’s important to be certain that you have enough projects on your work schedule to pay off the debt. Hiring is usually the cheaper and smarter option, especially for a company that is still growing and finding its feet. Hiring machinery also gives you a fixed cost to work to, and makes for much easier and more accurate pricing up of jobs

2. Avoid Maintenance Costs

A huge advantage of hiring machinery as opposed to purchasing it, is avoiding the stress of maintenance costs. Maintaining a fleet of construction vehicles is also not cheap. On top of storage costs, these machines require regular servicing to prevent breakdowns, and to ensure that they can be operated safely.

3. Testing New Equipment

Another great benefit of hiring is being able to try out the latest equipment and machinery. When you buy, you’re more likely to need to buy used, and that means purchasing an older piece of equipment that might be outdated. What’s more, you’re then stuck with that piece of equipment for the rest of its life cycle.

When you hire, you have the luxury of testing out the newest, most innovative equipment, at a fraction of the cost of buying brand new equipment.

Pros of Buying

1. It’s Yours

On the other hand, if you can afford it, why not buy it? Owning your own equipment means you can use it whenever you want, without the hassle of having to meet anyone else’s conditions. This removes the stress of having to stick to a schedule to return hired equipment on time.  

2. Cheaper

Ultimately, the decision between choosing to buy or hire your construction equipment all depends on the owner’s ability to pay it back, and size of business. If you run a large-scale construction company conducting multiple projects with hundreds of employees, then having your own equipment and fleet of machinery is a no brainer.

Need Construction Equipment?

Looking for construction equipment to hire? You can count on MetroHire for both purchasing and renting options. Our company offers an extensive range of brand-new construction equipment and machinery, including telehandlers, rough terrain forklifts, excavators, plate compactors, rollers, dumpers, and much more. We also offer for sale a variety of late model second-hand equipment, tools, and machinery, including diggers, skid steers, and concrete breakers. Talk to us today to learn more.