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The coronavirus pandemic has made us become more flexible in our response to new developments and we now look for greater financial stability. We are hesitant to invest in machines and equipment, even if we are sometimes encouraged or even required to do so. When working in inner cities, for instance, emission-free machines and vehicles are increasingly required. This raises the question for many businesses whether it’s smarter to buy now or to (continue to) rent. Boels is happy to shed some light on the benefits of renting (emission-free) equipment.
Buying sounds interesting. In fact, it really is fantastic to own a beautiful piece of machinery in your company colours. That’s until the bills start coming in. And after a few years, you start pay even more for maintenance and repairs. Moreover, the accountant has to take care of the depreciation and insurance costs every year. This is when you really start to appreciate the value of renting: no more worries about the fixed costs every month. It gives financial security. But the biggest argument is of course eliminating the initial investment costs, which perhaps frees up space to use that money elsewhere. Another factor is the uncertainty about new developments. Battery-powered or hydrogen-powered machines, where do you start and what costs are involved? Still, as an entrepreneur, you want to move forward and that’s when short-term options like leasing and renting are more likely to come into play.
- Rent often
- Self invest
Greater flexibility and cost savings
Renting gives you access to professional equipment at the right time and place. What’s more, you can respond to unforeseen circumstances a lot quicker. It’s a form of flexibility that makes a big difference, both in money and headaches. This also goes to projects that (temporarily) require less equipment. All too often, expensive machines stand idly for short – or even longer – periods. Not only can this reduce the company’s responsive capacity, it usually also adds up in maintenance costs.
New and modern equipment
The equipment of rental companies is used quite intensively, but at the same time it is well maintained and regularly replaced. With an average age of 46 months, the Boels fleet is one of the most modern in the rental industry. This means that as a renter, you are always assured of properly functioning machines that meet the latest (environmental) requirements and certifications. These standards are much harder to meet with your own equipment.
Faster compliance with sustainability standards
Using zero-emission equipment is an important tool in the reduction of carbon emissions. Due to high purchase costs and a certain fear of the unknown, zero-emission machines aren’t yet a viable option for many companies. Here, too, hiring offers the solution. Boels currently has a ‘green’ alternative available for almost every ‘traditional’ combustion engine machine, from hybrid power to fully electrified battery-powered machines. By renting first, you get to practice how it works, as it were. It’s definitely a clever move and one that prepares you well for the future.
Delivery and collection part of the deal
Delivering and picking up rental equipment is generally arranged by the rental company, which means that businesses can avoid that hassle altogether. You inform your rental partner what you need, and where and when you need it so your project can keep moving. This is particularly interesting for larger companies with several construction sites, as they don’t have to buy a separate truck and trailer and employ a driver.
Boels also gives you expert advice
You don’t only rent equipment when working with a large rental company like Boels, you also share the available knowledge and can count on expert advice that’s tailored to your project and business operations. Boels works with specialised branches, such as in concrete works, construction equipment or climate control. You get the added bonus of free specialist knowledge and expert advice when you rent
Calculate the financial benefits
Renting provides a financial advantage in the short term. But it can also be interesting for the long term to compare the actual costs of rental with ownership, including the use and maintenance of machines and the flexibility of the company. The European Rental Association has developed a handy, free (English) tool called the TCO Calculator, to help you do this.