Choosing to buy or rent construction equipment, or mining machinery, is one of the most critical decisions for any mining company. This decision depends on your budget and project goals, but it’s crucial to get it right. If you don’t, you won’t meet your operation needs.
So, should you rent or buy equipment for mining and broader industrial needs?
Well, at HDD Solutions, we’ve put together this guide to buying machinery outright or mining equipment hire. It’ll help you make the right choice based on your circumstances.
Hiring Mining Equipment: The Pros and Cons
For many businesses, hiring offers affordability and flexibility. It’s a chance to scale up operations at a fraction of the cost of buying, all while adding to your fleet. This can help workers get the job done.
Consider these perks and whether they suit your latest project:
- Lower upfront costs: When you rent equipment, you gain access to heavy-duty assets at a fraction of the cost of buying. This is arguably the main advantage, as you keep costs down. Very beneficial if you’re a smaller business or startup.
- Flexibility: Get tailored contracts that suit your specific business needs.
- Scalability: Add and remove assets to your fleet as suits. With renting, you can keep those costs down while adding more hired machinery to support your project.
- Reduced maintenance and repairs: Suppliers such as HDD Solutions offer servicing and maintenance as part of the deal.
- Cutting-edge machinery: Access world-class machinery from industry-leading manufacturers. No buying second hand for lesser goods.
- Tax advantages: Hiring expenses may be tax-deductible, which is another way to manage your cash flow needs.
Ultimately, hiring offers your business economic efficiency. Modern, insured, and well-maintained equipment you hire for as and when you need it.
Buying Mining Equipment: The Pros and Cons
Purchasing heavy-duty equipment brings with it full ownership of the assets. This may suit your business needs. Weigh up the advantages below as part of your business plan:
- Outright ownership of assets: Despite the high upfront cost, the machinery will belong to your business. That removes rental fees for hiring and ensures you have access to your equipment at all times.
- Full control and customisation: Add business branding to your asset, modify it, and ensure it meets your project needs.
- Avoid availability constraints: Don’t miss out on out-of-stock equipment. The purchased asset is yours and can be used whenever you need it.
- Strong resale value: If you maintain the asset well, in the long run you may be able to sell it for a significant return if you no longer need it.
However, do keep in mind heavy-duty mining machinery is expensive. You’ll need significant capital to invest in these assets. If that isn’t available to you, then hiring is an excellent alternative.
Hire Mining Equipment or Buy Mining Equipment? Making a Decision
Still struggling to make a decision? Here are a few pointers to get you over the finish line:
- Consider your project duration and whether buying or renting will save you money in the long or short-term
- Short on cash flow? Hiring is definitely a suitable choice
- Do you have in-house maintenance resources? If not, hiring is the way to go
- Planning to use equipment every day for years on end? Buying may be a suitable choice
Capital is often the defining choice for businesses. If you don’t have the funds or want to limit excessive spending, there’s no denying renting mining equipment gets you high-quality equipment at a fraction of the purchasing cost.
Order Quality Mining Equipment Hire Today
HDD Solutions is one of Australia’s leading heavy–duty mining equipment suppliers. For decades, we have supported businesses like yours with assets from industry-leading manufacturers.
Contact us today for a quote on our quality mining equipment for hire—we’ll make sure you get the job done.
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Is it Cheaper to Hire Plant Machinery?
Yes, it’s cheaper to hire the equipment than buy it. You won’t have the high upfront costs of purchasing new mining machinery. Additionally, you won’t have to fund maintenance and operating costs.
While you won’t own the asset, you’ll have cost-effective monthly instalments to pay mind any of the concerns of repair bills or long-term ownership.
Should I Hire Mining Machinery for Long Projects?
If you have long-term projects lasting for several years, buying mining machinery to cover all project needs may make more sense. However, hiring is still viable as you can scale or reduce your contracts as and when needed. You may find one asset doesn’t suit all project tasks over a long time, but hiring different equipment does.
