Breaking Down the Myths: Is Renting Equipment Truly Cost-Effective?

Trucks with trailers

There are many opinions about which option is best when purchasing or renting equipment.

In this blog, we’ll clarify the subject and dispel the myths you may have heard about equipment rentals so you can see the benefits they can deliver for your business.

Myth: The equipment you rent has seen better days

Fact: Rental vehicles are kept in top condition

When it comes to rental equipment, a rental company relies on its reputation for quality and reliability. So, keeping vehicles clean, regularly serviced, and well-maintained ensures they continue to deliver on their promise.

Opting to rent vehicles and equipment means this upkeep is taken care of. Rather than having to organise it yourself or trust that your team is managing it, you get peace of mind that the machinery you use will operate at its best.

Myth: You only get outdated, secondhand assets

Fact: Renting gives you access to late-model equipment

Purchasing a new vehicle or piece of equipment means you can choose the latest model. But over time, equipment ages, and technology evolves. 

Purchasing a new vehicle allows your business to use that specific make and model. 

Renting instead of buying allows you to change vehicles and equipment as often as you need. You also get access to regularly updated vehicles and equipment when needed, so you won’t be stuck using one piece of equipment until it ages out of your fleet.

Myth: Renting is expensive

Fact: Renting can be more cost-effective than an outright purchase

Consider this. When you buy a piece of equipment or vehicle, you’re not just paying the (often steep) upfront cost. You pay for fuel, insurance, and maintenance, all of which add up. Any tax deduction benefits trickle down over time as depreciation. It can be a prohibitive exercise for a piece of equipment you only need for a short period.

Opting for a rental instead means you avoid the large initial capex sum. You pay regular opex payments as you go, which you can claim as ongoing business expenses every financial year. It’s not just a better investment; it’s better for your cash flow and allows you to plan your budget more consistently.

Myth: You’re locked into a contract with long lead times

Fact: Renting provides flexibility that a purchase doesn’t

Given the nature of project work, equipment rental is designed to be flexible. 

Compared with purchasing a new vehicle or asset, renting provides more agility. More options are available: You can rent the vehicle or asset for the period you need, and if it’s not delivering results, you can return it and rent another vehicle.

It also allows your business to scale operations up or down as needed without wasting valuable space on-site with unused assets. 

Myth: Renting is only suitable for businesses of a specific size

Fact: Renting is a viable option for businesses of all sizes

For small businesses, purchasing a new asset or vehicle may not be possible due to the significant upfront costs. Renting provides the option to access the asset for the required project duration without having to carve out a budget that’s otherwise not available.

For large organisations, purchasing a new fleet of trucks or warehouse equipment requires a vast capital outlay. Enterprise businesses can engage Rentco to hire a fleet of trucks and trailers to support their operations and integrate new vehicles into the fleet without impacting their bottom line.

See the value that equipment rental can deliver for your business

There are many myths about vehicle hire and equipment rental—entirely unfounded myths. 

So, the next time you need equipment for a project, contact your nearest Rentco depot and see the difference renting makes to your productivity—and your bottom line.