If you own a construction business, one of the toughest decisions you will face is what contractor equipment you should invest in and purchase and what equipment you should rent. Not every business uses the same equipment or tools, as the task each company completes varies. If you are wondering whether you should buy or rent a piece of contractors equipment, here are three questions you should ask yourself to help you make a decision. 

1. How Often Will the Piece of Equipment Be Used?

One of the first questions you should ask yourself is how often will the piece of equipment be used. If a piece of equipment is not going to be needed often, what will you do with it when it isn't in use? If you are not planning on using a piece of equipment often and you don't really have a place to store or house it, buying it may not be the best decision and you should consider renting instead. On the other hand, if you plan on using it frequently, buying it may be the better choice for you. 

2. What is the Total Monthly Cost of the Equipment?

The next question you need to ask yourself is how much you will pay monthly if you buy the piece of equipment. This includes any loan payments, interest payments, insurance payments, and the cost of maintenance and repairs. If you have to store the item, also include storage fees. Then call around to local contractors equipment rental companies, like Ever-Joy Rent All Co, and find out how much it will be to rent the piece of equipment. If the rental cost is cheaper, it may be a better option. 

3. How Fast Does the Item Depreciate? 

The last question you need to ask yourself when deciding whether to rent or buy contractor equipment is how fast the item you are considering buying depreciates. This can be challenging to figure out. But one of the best ways to determine this is to look and see what used items that would be similar to what you are buying are selling for. Look at the price of the item a year out, a few years out, and then several years out. If the item maintains its value for awhile, buying it and then selling it if you don't use it as frequently as you thought may not be a bad move. But if the item depreciates fast, you may be better off renting or even buying a used piece of equipment. 

Deciding whether to rent or buy a piece of contractors equipment can be a challenging decision, but asking yourself these three questions will help you make the best decision for your company.