Are you thinking about renting heavy construction equipment for your business? Before you do, it is important to clear up any myths and get the facts about renting so you can make your decision with confidence. Renting equipment can be a fantastic cost effective solution if you have the right information when starting the process.
Dispelling Myths & Facts about Rental Equipment
Below are a number of common myths about the equipment rental business. You may have read or heard some of them, or simply have come to know them to be true. However, let’s take a look and see where the myths fall flat:
1. Myth: Rental Equipment Is Made up of Only of Older Models That Have Seen Better Days.
Fact: You can rent newer model, well maintained equipment for your job.
You’ll have access to newer model equipment that has been well maintained and likely even with lower service hours. The rental agency tracks this information very carefully and ensures all of the equipment in its fleet gets regular maintenance, so it’s ready to be rented to clients who request it. The equipment has to be in good working order so it can be sent out on client jobs.
Additionally, if a piece of machinery you rented needs any type of maintenance during the rental period, the rental company would be responsible for performing any necessary service or repairs after hours. You’ll be able to focus your full attention on the task at hand.
When you order equipment, you will have access to it on the days when you need it. Your rental dealer will make arrangements with you to determine the best way to get the equipment to your job site and returned when its tasks are completed. You would also be responsible for storage between jobs, and you would have to maintain it. Different dealers have different pricing and delivery options, so you will want to ask their policies when ordering or getting a quote.
Another advantage to renting is access to the most up-to-date technological features. Once you purchase a machine, it’s usually cost-prohibitive to upgrade regularly to keep up with any changes. Renting, however, gives you access to those new features that may have already rendered your piece of equipment technologically obsolete.
You can also rent the specific machine you need to get what you need to accomplished — rather than having to store it, maintain it, etc. This is especially beneficial if you need a machine for only a one-time job or a limited amount. That means from an efficiency standpoint, renting equipment makes sense.
2. Myth: Renting Equipment Is Too Expensive
When working out a budget for equipment rental, the first step should be to list all the tasks that need to be completed. It’ll be much easier to see the entire picture if you are organized.
Once you have made a list of everything that needs to be done, you’ll want to determine which ones require heavy equipment. Then, of course, determine what types of machinery you need. What do you have in your fleet? Is there a component of the job that would be easier to complete with something you don’t currently own, like a dozer?
This is where renting becomes economical. If you need a dozer for a one-time operation, but you don’t currently own one, it will be much more economical to rent rather than purchase. You can get what you need to do accomplished and return your rental. When you compare the cost of maintaining heavy equipment you own, renting what you need for specific projects is the most budget-friendly approach.
3. Myth: Rental Fees Are Not a Tax Deductible Business Expense
Fact: Rental fees can be deducted immediately from your business income tax return.
If you buy a piece of construction equipment, the cost can be deducted over several years. Income tax laws determine how much you will be able to deduct each year until the full cost of the equipment has been accounted for on your income tax return or you sell it.
Rental fees are a tax-deductible business expense, too. The difference between these types of business expenses is that you can deduct rental fees, plus any extra costs charged for reserving it, delivering the equipment to your jobsite, insurance while the equipment is in your possession, etc. on your income tax return as a business expense in the year they were incurred.
4. Myth: You Can Only Rent Equipment Over a Long-term Basis
Fact: Rental terms are very flexible.
You don’t have to think of renting equipment in the same manner as signing a lease for space in a building. Terms are very flexible — you can arrange for the terms that suit your situation. Daily, weekly, monthly and long-term contracts can be set up to fit your equipment needs.
If during a project, your requirements change, you can even swap the model you originally rented for one that would be a better fit. Just call the dealer and let them know what you need. Most times, they will be more than happy to help you stay on track with your project and make arrangements to make the change for the equipment you need now.
5. Myth: Rental Period for Equipment Is Calculated From When It Leaves the Dealer’s Lot
Fact: Transportation is not generally included in the rental period.
To find out when the rental period starts and stops, read through the rental contract completely before signing it. Be sure to ask questions about anything that is unclear before you pick up a pen and put it to paper. Whether you are signing a contract for an air compressor rental or a Cat backhoe rental, the same rules apply — make sure you understand exactly what you have signed up for before signing anything.
However, most standard agreements count the rental period as beginning the day after you take possession of equipment on your jobsite. The rental period ends on the last day you use the rental equipment and contact someone to come pick up the equipment. In most instances, travel time to deliver and pick up the equipment is not included in the rental period.
6. Myth: You Won’t Be Given any Help or Support With Operating the Equipment
When you decide to rent construction equipment, you can do it with confidence. You can try the equipment to make sure it’s the right model for the task you need before you arrange delivery to your job site. Depending on the product, dealers can also arrange for operator training for your operators, so they feel comfortable with the equipment, too.
Some dealerships have factory-trained service technicians who perform service at our facility to ensure our rental equipment is well maintained and ready to go. Fully trained and experienced service technicians can provide you with 24/7 field service so your rental equipment does not experience any unnecessary down time during your rental period.
Along with these benefits, our standard client support also includes 24-hour emergency rentals. If you need to arrange for more equipment to keep up with contract demands, we can arrange to deliver equipment to your jobsite quickly. It’s good to know you have somewhere to turn if a unit in your regular fleet breaks down or you quickly need another piece of equipment to complete a job.
7. Myth: Rental Companies Don’t Post Rates Online so They Can Add Extras on to the Quote
Fact: With so many equipment models, attachments and terms available, it’s simply necessary to create custom quotes.
At Foley, Inc., our Cat Heavy Equipment Rental Division includes many types of equipment. Within each type, there can be several models. When you start adding attachments onto the various models, it multiplies the possibilities for customer quotes. Next, you have to look at rental rates for different times — daily, weekly, monthly or long-term. Transportation to a job site as well as whether the client needs operator training and insurance are all factors that determine the cost of renting a piece of equipment.
We ask that clients contact us to discuss their individual needs in detail so we can provide them with a custom quote. Rather than having a client try to work up their own numbers from the website, our experienced staff would be pleased to offer assistance and answer any questions. In this way, we make renting construction equipment an easy and pleasant process for you.
How to Rent Construction Equipment
Now that we’ve dispensed with some myths around renting heavy construction equipment, here are the steps involved in renting construction equipment:
1. Determine the Exact Type of Equipment You Need
Take some time to consider the different models available of the type of equipment you are looking for. Do you need earthmoving equipment? Excavators? Skid steer loaders? Once you choose the model you want, you’ll need to decide how long you’ll want to rent it. This is called the “duration” of the equipment.
You’ll also need to determine a schedule for when you need the equipment delivered to your jobsite. The rental company needs this information to confirm availability for the model you are looking for as well as to complete the rental agreement.
It’s important to plan your project so you don’t have the rented equipment sitting idle because it has been delivered too soon. You also don’t want to have work come to a halt because the rented equipment has not arrived yet and it’s needed for work to continue. Careful project management is required to coordinate the type of rental equipment you need and the delivery date to keep work flowing smoothly on the jobsite.
2. Get a Quote for the Cost of Rental Equipment
Once you know exactly what model of equipment you want to rent, when you want to rent it and for how long, you can request a detailed quote. It should include if and how much the equipment rental company will charge for delivering the equipment to your jobsite. Be sure to ask whether you are being charged a fixed fee or if the cost depends on the distance involved. Some rental companies charge based on how far they have to transport the rental equipment from their location to the drop site. You’ll want to be aware of the exact terms of this part of the rental agreement.
3. Ask Whether You Will Be Charged Additional Fees
Depending on the rental company, there may be “environmental fees” or insurance to protect the rental equipment added to the amount you were quoted as a rate. Specifically, ask whether there are any other fees or charges that will be added to the contract.
4. Discuss Terms for Financing the Rental
Depending on the length of the rental and the policy of the company, you may have different choices for financing your equipment rental. For a short-term rental (daily or for a week), you may want to use a company credit card. If the rental is going to be a long-term one, you will likely want to apply for an account with the rental company so you can be billed monthly.
Generally, you would need to fill out an application form and provide your contact information for this purpose. The form would likely ask for some business references, as well as information about your business banking. Once the information was checked by the rental company, you would be advised whether you would be granted an account.
When you rent your equipment from Foley, Inc., we can help you set up the financing you need. Just let our knowledgeable team know what you’re looking for.
Rent Cat Heavy Construction Equipment Today
At Foley, Inc., we carry an extensive line of Cat heavy construction equipment, and we can help you find the right piece of equipment you are looking for. Call us or fill out our online form to find out more about our equipment rentals or to get a no-obligation, custom quote for your business today.
Contact a Foley Rents Representative