The benefits of hiring an excavator versus buying

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Excavator Attachment Hire - SERV Plant Hire

The benefits of hiring an excavator versus buying are manifold, but not all are obvious. So, why rent equipment instead of buying outright? As large, complex pieces of equipment, excavators come with a significant price tag. As a result their purchase should not be taken lightly and the buyer should be 100% sure this is the best option. The sheer range and variety of excavators can be baffling and it is important to choose the correct equipment for the job in hand. Buying in haste can leave you with a large, costly mistake in the shape of an excavator not suited to task. Plant hire companies will be happy to offer advice and help you to select the correct excavator. Customer satisfaction is the key to their continued success and providing the correct equipment every time the core of their business.

With this in mind, we will discuss the main factors to consider to establish if hiring plant equipment is the best choice for you:

1.      Initial outlay / Cost

As noted above, excavators can be very expensive to buy, with some costing several thousand pounds. For smaller business or those just starting out, this will simply be beyond the limits of their finances. Obtaining finance can be a difficult and time consuming process or impossible for some. This is where plant hire comes in, as the customer can assess how long the job will last and hire equipment for this duration only. Unless the excavator is to be used for extremely long periods, plant hire will inevitably be the cheaper option.

2.      Training

In some cases, plant hire companies may offer professional training in the use of their hire equipment. If not, they will still be able to offer advice on the safe and efficient use of excavators. It is always important that workers know the safest ways to use their machinery and tools to protect themselves and co workers. No responsible employer would wish to put their staff at risk and familiarity with equipment avoids this. In addition, as the Person Conducting a Business or Undertaking (PCBU), they are legally responsible for operator competence.

3.      Depreciation

All machinery and vehicles depreciate in value from the moment of purchase, including excavators. Whichever model is bought, it will soon be superseded by newer models with improved features. Replacing old equipment is expensive and if this equipment is sold it will only be worth a fraction of its initial cost. By hiring equipment, the customer can be sure of always having the newest models with cutting edge capabilities. This will ensure work can be completed quickly and to a high standard.

4.      Tax Advantages

As of 24th July 2020, payments for the hire of plant machinery without an operator are outside the scope of the Construction Industry Scheme (CIS). According to the official government website “Where a subcontractor has to hire plant in order to carry out construction work, the cost of the plant hire and any consumable items such as fuel needed for its operation, may be treated as materials for the purposes of calculating any deduction on account of tax.” – https://www.gov.uk/hmrc-internal-manuals/construction-industry-scheme-reform/cisr14260

5.      Length / Duration of use

When purchasing equipment it is always worth considering how long it must be used for to pay off its purchase. It has been calculated that excavators must be used 70% of their time on site to be cost effective if bought. For jobs of short duration, hiring an excavator will always be more cost effective than buying.

6.      Maintenance

When buying equipment, the cost doesn’t end with the purchase itself. Regular maintenance and servicing will need to be performed and any breakdowns will be time consuming and costly. Work will be delayed and man hours lost in addition to the cost of repairs. All hire companies regularly service and inspect their hire equipment to ensure it runs safely and efficiently. These inspections are carried out by experienced, expert staff who are intimately familiar with the equipment. For the customer, this gives peace of mind that all equipment is running at peak performance levels. Any breakdowns will be dealt with by the hire company themselves, reducing downtime and saving money

7.      Storage

Even with mini excavator hire, storage can be an issue. They are still large pieces of equipment and a correspondingly large storage area will be needed to keep them secure. Theft of construction equipment costs the industry £800 million each year in the UK alone. When hiring plant machinery, it can be delivered to you by the hire company and collected after use. finding a permanent, secure area for storage will not be an issue.

8.      Versatility

Excavators are by design versatile pieces of equipment, suited to many different tasks. However, they still have their limitations and the time will come when they are just not suited to the job in hand. Hiring plant machinery allows the customer to pick from a wide range of sizes, weights, operational capabilities and attachments. This guarantees the best tool for the job every time without a huge outlay for potentially unsuitable equipment.

9.      Availability

In construction, it is always important to get the job done in time. Most work will have strict deadlines, and the ability to get the right equipment on site and working quickly is vital. Buying equipment can be delayed by stock shortages, slow delivery and a host of other issues. Hiring instead guarantees the equipment is available and can be delivered quickly to avoid any delays. Coupled with the wide variety of makes, models and attachments available, a quick reliable solution is always at hand.

SERV Plant Hire are plant and machinery specialists offering a huge variety of construction equipment for hire to the North West of England. We have a wide range of micro, mini and midi excavators for hire, with attachments to suit any need. Contact us to discuss your requirements, we will be happy to answer any questions and ensure you have the best equipment for the job.

Excavator Hire

We offer a wide range of excavators for all kinds of jobs from established manufacturers such as Takeuchi and Volvo.
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