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Your business is one of the largest investments you have ever made. Even if the initial monetary contribution was minimal, you have now invested blood, sweat, and maybe even a few tears. If you are considering purchasing a Skid Steer as an addition to your company’s equipment line, you need to know if the financial investment will pay for itself. So how do you decide between buying and renting a Skid Steer?
If you have been in business for some time, you have the benefit of looking at your historical expenditures. Using these numbers, you can analyze the financial impact of renting Skid Steer equipment. If you need to rent a Skid Steer so often that you spent thousands of dollars in the last quarter alone, you might feel it is time to buy your own equipment. If your costs in the past have been minimal, then continuing to rent probably makes more financial sense.
New businesses do not have the benefit of looking through profit and loss sheets or scrutinizing rental records. This is where annual projections are helpful. You will need to estimate how long each project will take, what percentage of that time a Skid Steer will be needed on the job, and how many jobs your company will realistically take in a year’s time. Now, using the Skid Steer rental cost data below, you can estimate your annual rental expenses.
If you ran the numbers and found you have been (or will be) spending a small fortune in rental fees, it is time to move on to the next step in the decision making process. There are additional considerations beyond the purchase vs. rental cost of a Skid Steer though.
Can you obtain funding? If you don’t have liquid assets to buy a Skid Steer outright, find out if you are able to finance the purchase. Keep in mind that most equipment loans will require a down payment of 20 percent. The typical term of an equipment loan is 3-5 years.
Do you use the same machine on every project? If you always use the same size skid-steer loader, and you use it often, purchasing might be a wise investment. If you find that your project size varies, however, continuing to rent a Skid Steer might be wise because you have the added benefit of versatility.
Are you able to store and transport the machine? If you already own a trailer capable of transporting your equipment from your shop to your jobsite, then this is not of concern to you. If you would need to purchase a trailer to haul your Skid Steer, or don’t have the storage space for large equipment, then consider the added expense of these necessities.
It is always a good idea to list the pros and cons of any situation before making a business decision. The list will vary based on your company’s business model. Viewing the positives and negatives of a situation in list format helps you conceptualize a situation before making a conclusion.
Much like a car, the purchase price of a Skid Steer is based on the model and the optional features. The rental rate is also based on these factors, as well as the length of time the equipment is needed. Knowing the average costs on a base model can help you make the decision to rent or buy a Skid Steer.
|Type||Daily Rate||Weekly Rate||Purchase Price|
|Skid Steer Skid-Steer S70||$127||$508||$13,800|
|Skid Steer Skid-Steer S450||$156||$602||$22,300|
|Skid Steer Skid-Steer S550||$180||$675||$25,200|
|Skid Steer Skid-Steer S650||$200||$819||$30,800|
|Skid Steer Skid-Steer S770||$270||$945||$35,800|
|Skid Steer Skid-Steer S850||$365||$1,145||$41,700|
Purchasing a skid steer is a hefty investment, but can be worth the cost for some businesses. If you don’t want the headache or cost of maintenance, storage, and transporting, then renting a Skid Steer might be the right decision for your business. SkidSteerRentalDirect.com understands your business is unique. Your decision to buy or rent should be based not only your frequency of use, but also all other business model factors that apply to you.