Hire vs. Buying Equipment – Which is Right for You?
One of the biggest decisions for construction businesses and contractors is whether to hire or purchase their equipment. From hand mixers to trailer mounted pumps, having the right tools is essential—but so is managing cash flow and operational flexibility.
This blog explores the pros and cons of both renting and buying construction equipment, helping you make the right decision for your business.
The case for hire equipment
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Lower upfront costs
Hiring eliminates the need for significant capital investment. It’s an ideal option for small businesses, short-term projects, or those trying new equipment types.
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Flexible rental periods
Rentals can be tailored to the length of your project, with short-term and longer-term options available.
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Reduced ongoing costs
Hiring means you only pay for use of the machine while you need it, removing any additional on-going costs associated with machine ownership such as maintenance and insurance.
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Try before you buy
Hiring is a great way to test equipment prior to making a purchasing decision. It also enables your operators to become familiar with the equipment.
The Case for Purchasing Equipment
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Long-term cost efficiency
If you use a piece of equipment regularly, buying is typically more economical over a longer time frame. Ownership reduces the cumulative costs of frequent rentals.
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Control your business
Owning a machine delivers you with complete control. You have access to it whenever a project arises – no waiting for availability.
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Tax advantages and asset value
Owned equipment can be depreciated over time, offering potential tax benefits. It also becomes an asset on your balance sheet.
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Customisation
Ownership allows you to modify or customise equipment to suit specific project requirements.
Key questions to ask when deciding whether to hire or buy
- What is my budget?
- How will I pay for the purchase/rental – is financing required?
- How often and for how long will I use the equipment – what’s my ROI?
- Do I have all of the required supporting assets to properly use the equipment (e.g. storage)?
- Does my business have prior machine ownership experience?
When hiring makes more sense
- Short-term projects
- Immediate requirement
- Limited access to investment capital
- Try before you buy
When buying is the better option
- Anticipated high frequency of use
- Long-term projects
- Higher degree of control
Get the best of both worlds with CGS Equipment
At CGS Equipment, we offer both purchase and hire options. Whether you need a ChemGrout pump for a month or want to invest in a Cemen Tech volumetric mixer for long-term use, we’ll tailor a solution for your project and budget.
Contact us today on 1300 581 984 or sales@cgsequipment.com.au to explore your options.
