How To Make Rent-to-Own Equipment a Part of Your Fleet Management Strategy

Being unstoppable means knowing how and when to use all the strategies available to you to get the job done, solve challenges and do more with less. Adding a rental machine to your lineup – whether temporarily or permanently, when you rent-to-own – is one such strategy you shouldn’t overlook.

What are the benefits of renting or rent-to-own equipment options?
How do I know if I should rent or buy?
Is it cheaper to rent or buy?
What are the pros and cons of different construction equipment rental companies?

These are questions that every fleet manager has asked at one time or another, and we’re here to answer them once and for all.

The Benefits of Renting and Rent-To-Own Equipment

When most people think “rental,” they think “short-term.” And while it’s certainly true that a rented machine can solve immediate challenges like inventory shortages and a down machine, smart business owners also understand the value of long-term construction equipment rentals as an investment in their future.

Smart, conservative business growth.

If there’s one guarantee in life, it’s that nothing is guaranteed. Every job is different, every possibility is on the table, and everything can change. Demands can rise but they can also fall, and a busy season doesn’t guarantee a busy future. Renting and rent-to-own options allow you to adapt to market fluctuations and take advantage of new opportunities while leaving you less vulnerable to potential losses.

Let’s say you’re about to start your busiest season yet and need to expand your fleet to meet the demand. Renting gives you the freedom to play your new growth by ear. If six months into the season you find the numbers aren’t sustainable and you won’t be as busy next year, you can return the machines you don’t need. On the flip side, if you find it is sustainable and your workload is only going up, you can set up a rent-to-own option and continue growing.

Rentals and rent-to-own machines can also be used as a low-commitment way to test drive new project opportunities. Perhaps you’re thinking about expanding your footprint or taking on new types of jobs. Why make a massive investment in a specialized machine you aren’t sure has a permanent home in your fleet? Worst case, you have the short-term tools you need to try out new opportunities and make decisions. Best case, you can set up a rent-to-buy option and keep that momentum going at a reduced rate. Particularly with smaller, growing companies, rent-to-own options can help maximize revenue while minimizing risk by being both a springboard and a safety net.

Controlled costs without unexpected surprises.

The cost benefits of construction equipment rentals go far beyond simply saving money. When used thoughtfully, renting and rent-to-own options can make even the tightest of budgets more flexible, allowing you to utilize your money to its maximum potential. First off, it frees up a lot of much-needed capital. You have to spend money to make money, and a machine you can rent with the option to buy ensures that all of yours isn’t tied up in one area, inhibiting your ability to progress other aspects of your business, like labor or materials. Access to a larger portion of your budget can also help you maintain a positive cash flow, insulating your bottom line from unexpected costs.

You also know exactly how much you’ll be spending each month on your machine. Most rental agreements charge a fixed monthly rate that never changes. This rate may also include transportation and unexpected repair fees, two other costs you don’t necessarily have to worry about. Knowing exactly how much you’ll be spending on your machines makes budgeting easier and allows you to be more proactive with your finances. 

Try before you buy.

The trust we put in our machines isn’t given. It’s earned. That’s why, when it comes time to purchase a new machine, it’s not a decision we can take lightly. Renting allows a machine to prove itself where it matters most: on the job. Here, you can see what it’s really made of with hands-on experience you can’t get on a lot or from a brochure. If you find it’s everything you thought it was, you can rent-to-buy knowing you’ve made the right choice. If not, you’ve saved yourself a lot of time, money, and headaches.

This can also provide you with something every business loves: more options. By renting with Chadwick-BaRoss, we can help you explore different manufacturers risk-free. You may find a Link-Belt's cab design and controls more intuitive than your typically preferred excavator, making your operators more comfortable and increasing their efficiency. Or you may discover a Takeuchi's size and power to be much more suited to your needs as compared to another compact machine. Perhaps you own a Ponsse but have been meaning to try an ELTEC log loader.

Renting also gives you a chance to experience new technology, like Link-Belt’s RemoteCARE telematics system, test different fuel efficiencies, and find new product support programs that help optimize uptime. Or maybe you’re ready to try an electric machine but unsure about charging reliability. Being the first to try these new product benefits before making a full investment into a machine gives you a competitive advantage in getting the job done better, faster and more efficiently.

Is It Better To Rent Or Buy?

The short answer is: It depends. The driving factor behind which option is more cost-efficient is how long you plan to use the machine. A construction equipment rental generally costs more per month than financing or leasing, but the difference is negligible when you only rent for a few months. However, renting may cost you more money if you plan on taking on a large job with an extensive timeline. Let’s do a little math and show you what we mean. Let’s say you’ve been renting an excavator for six months at $8,000 a month. That’s $48,000 and counting. If you purchased the machine, you may only be paying $3,000-$4,000 a month, with the added benefit of ownership.

Or, with a rent-to-own agreement, many times you get the best of both worlds. In the example above, if after six months you decide you are happy with the machine, you can often apply most or all of the $48,000 in rental fees toward your purchase cost (at which point, you’re buying a used machine with a depreciated value and lower total purchase price.)

Generally speaking, our rule of thumb is that if you plan to use the machine for more than six months, rent-to-buy is probably your best strategy.

Why Rent From Chadwick-BaRoss?

All bias aside, there are pros and cons to renting from a small dealer versus a large dealer versus an equipment rental company.

Rental fleets still need reliable service.

First and foremost, renting from a dealer you trust ensures that you get the level of service and support you would get with a full-price purchase. Rental machines still require routine maintenance and parts, and regardless of who owns the machine, a service provider who can’t deliver great customer service is going to slow you down.

Likewise, while renting may eliminate the cost associated with unpredicted repairs, it doesn’t stop them from happening. If you have a breakdown that takes down your whole operation and it takes the rental company’s repair crew all day to get to you, the money you may be saving on a cheaper rental won’t come close to the money you’ll lose in downtime.

That’s why it’s essential you rent from a company that can respond to your needs swiftly and effectively—the kind you find at Chadwick-BaRoss. We have a highly coordinated fleet of fully equipped service trucks operated by highly trained field technicians and supported by nine full-service locations from Maine to Connecticut. With that size footprint, we’re never too far away from your job and can respond quickly with a comprehensive plan of action. And, if you rent a machine from us with telematic capabilities, like Link-Belt’s RemoteCARE or Volvo’s CareTrack, we can monitor your machine in real-time. We’ll be alerted to problems the second they occur, run full diagnostics to better prepare ourselves, and precisely locate your rental to minimize response time even further. We also offer a wide selection of additional equipment services and solutions that become available to you should you rent-to-buy.

Not too big, not too small – just right.

As we’ve discussed, a primary benefit of renting and rent-to-own options is the adaptability they provide your business. However, to fully utilize this benefit and get the most out of your renting experience, it’s important you partner with a provider who’s just as adaptable. Let’s say you’ve rented an excavator to provide some additional support on a large job. You’re starting to get to that six-month mark with more work to be done and want to switch over to a rent-to-own option. Many rental companies and larger franchised dealerships won’t allow you to do that, leaving you high and dry with a machine that’s now digging deep into your bottom line.

At Chadwick-BaRoss, we’ll do everything we can to support your evolving needs. We strive to provide you with agility that allows you to optimize your business, enhance your abilities, and help you reach new levels of success. We have an expansive rental fleet including a variety of reliable manufacturers to choose from, plus the expertise to match our machines to your needs.

We’ll also conduct regular check-ins to ensure our machine is performing to your standards and warn you if you’re reaching that point of no return when renting becomes too expensive.

Any of our rentals can become a rent-to-buy option at any time for a reduced rate. If and when you are ready to buy, we’ll work with you to develop a payment plan that benefits both of us and ensures you get the best bang for your buck.

With the right partner by your side, renting and rent-to-own options can open a world of exciting possibilities for your business. They can help you explore new opportunities, discover new and innovative manufacturers, and confidently help you meet the demands of our industry head-on. When you rent with Chadwick-BaRoss, there’s no limit to the obstacles you can overcome. Contact us today to see how a rental can help make unstoppable possible.