A digger derrick is valuable piece of industrial equipment, and it is often the machine of choice for effective digging. While a key piece of equipment, the fact that it may only be used sporadically often leaves a company divided between renting or buying used digger derrick trucks.
Owning A Used Digger Derrick
Advantages: One of the biggest advantages of owning equipment is the flexibility to use it at a moment’s notice, without the delay of arranging to rent it. Telecommunication and electric users cannot afford delays, so owning is usually the only practical solution. Another advantage of equipment ownership is confidence in its condition. Undetected damage caused by a previous renter could put current renter at risk for substantial work delay or bill-backs. When your equipment is owned, you can be confident of its condition because your own repair and maintenance process has been followed. There should be few unpleasant surprises. Another factor to consider in a purchase scenario is the tax implication of owning the equipment. In some cases, the tax aspect is an advantage of purchase.
Disadvantages: While owning a digger derrick definitely has benefits, it also has some drawbacks. First is the high price tag of purchasing a digger derrick as well as maintenance cost. Owning one of these machines means that a company must shoulder expenses associated with both operation and maintenance in order to keep it in good condition.
Advantages: Renting a digger derrick has some advantages over ownership. The biggest one is that it can be used without the long-term financial commitment – monthly payments and maintenance costs. Businesses can rent and use the equipment as needed with thee only real expense being the rental fee.
Disadvantages: One downside to renting is that if the equipment must be used on a regular basis, the cost of continually re-renting will eventually overcome any savings versus ownership. A monthly rental rate is higher than a monthly purchase expense (lease payment). Unless the machine is readily available or booked ahead of time, renting may result in work stoppage or delays due to unavailability.
Choosing between renting and owning a used digger derrick truck comes down to two important considerations:
- Usage Frequency – Businesses that use digger trucks often may greatly benefit from owning one because renting will eventually become expensive and therefore impractical. For businesses that only use this truck on an occasional basis, there is no point investing in a machine that costs tens or hundreds of thousands of dollars for intermittent use.
- Financial and Logistics – The financial and logistical capacity of a business to purchase and maintain such equipment. Digger derricks are an expensive piece of machinery and maintaining them is costly as well. Businesses considering purchasing one must first determine their ability to pay for the equipment as well as the cost of maintenance. If the financial risk seems too great, it would be better to rent.
Some companies may find it helpful to rent, while others will reap the most benefits by purchasing used digger derrick trucks.
Let us help you make the best decision for you and your company. We are glad to help estimate values of used equipment, and support you as you evaluate options. Contact us if we can assist.