I checked the math on equipment rental vs. buying for a 6-month job

I was on a commercial build in Austin last spring, a 40,000 square foot office fit-out. Everyone in the office trailer kept saying buying a mini excavator and a skid steer was a no-brainer because of the timeline. They ran the numbers on a napkin and said rental would cost double. So I actually called three rental yards and got real quotes for a 6-month period. Between delivery fees, maintenance waivers, and not having to insure the machines myself, renting came out $4,200 cheaper even with the longer term. Nobody wanted to hear it because they all liked the idea of owning the iron after. But the PM finally looked at my spreadsheet and switched us to rental. Has anyone else run the numbers and found rental beats buying even on long projects?

2 comments

2 Comments

parker_thomas27d agoMost Upvoted

Maintenance waivers alone usually tip the scales.

xena_fox3927d ago

Used to be one of those guys who thought buying was always the smarter play for anything over a couple months. It just feels wasteful handing money over for something you'll never own. But a buddy of mine ran a similar comparison on a year long job we had. He broke down everything just like you did with the delivery and insurance and maintenance. Same thing. Rental came out ahead by a few grand. Changed my mind completely after seeing the actual numbers. People get hung up on ownership but forget all the hidden costs that eat away at that savings.