Many municipalities reach a point where equipment needs replacement, and the age-old question springs up — should you rent or buy fleet vehicles?
There’s no easy answer since the correct response depends upon various factors, including how often you’ll use the equipment, your municipality’s purchasing power and the features you need. Both rental and purchase options have advantages and disadvantages you should consider to make the best choice for your municipality.
Equipment rental — including leases — can boost production and cost savings. Yet, you need equipment available for your projects and flexibility in contracts.
Benefits of Rentals
Why rent municipal equipment? Rentals have many benefits, including:
- No maintenance fees: Your rental charges cover the expenses of planned maintenance and unexpected equipment repairs.
- Controlled expenses: You can easily calculate how much a rental will cost for a defined time.
- Equipment fit: You get the correct piece of machinery for the job.
- Cutting edge: You enjoy the benefits of newer equipment and features.
Drawbacks of Rentals
Conversely, consider the following limitations of renting equipment:
- Limited availability: A dealer may not always have the machine you require in stock or accommodate the rental period you need to finish a job.
- No return on investment: You can’t regain what you spent through future resale.
- Higher long-term costs: Prolonged rental terms can exceed the costs of outright purchase.
- Lease conditions: Early termination of an equipment lease contract may pose challenges.
Why buy your municipal equipment new? Purchasing delivers an asset with long-term use, yet you need to be aware of the total cost of ownership to make the most informed decision.
Benefits of Purchases
Many viable reasons exist for why municipalities should buy equipment, including:
- Positive return on investment: Since you own the equipment, you can recapture a portion of its expense through resale in the future.
- Special purchase types: Municipalities can use exclusive lease-purchase agreements designed to boost their buying power and offer tax-friendly breaks.
- Complete equipment control and accessibility: You enjoy mileage and usage hours without restrictions. Your equipment is available when you need it, too.
Drawbacks of Purchases
Purchase drawbacks include:
- Unpredictable downtime: If your equipment malfunctions, your projects may fall behind until replacement parts arrive or your machine is repaired.
- Equipment disposal challenges: Once the machinery is no longer useful to your municipality, you have to go through the resale process.
- Total costs of ownership may be higher: When purchasing, you must account for maintenance and repair expenses, finance charges and the costs of operation in addition to the purchase price.
Work With a Dealer You Can Trust
Southern Vac carries the largest stock inventory and rental fleet in the Southeast. Whether you’re looking to rent, lease or buy, we have the right equipment for you. Browse our new inventory, conserve cash with used equipment, or enjoy savings with a rental. Our expert team backs each of our machines 100% with unrivaled parts accessibility and services, so you get the highest possible quality every time.
Call to speak with a knowledgeable team member or contact us online for a quote today!