How do you decide when to rent and when to buy?

[bdog]

Renting something you use all the time is a huge waste of money but buying something you don't use often is probably a bigger waste.

How do you guys go about deciding?

I own tons of equipment but some things may get used a few times a year. I have a $40,000 dump truck for example. When first bought it was used daily for months but it has been used maybe four times this year. Heck No more than I use it I could hire a dump truck for $75/hr and it would be cheaper than what I pay in registration and insurance. Thinking about selling it and just hiring it out when I need one. I own a trencher. Probably worth 4K. I have dug two trenches this year. I can rent one for around $150 a day I think. If I sold it I could rent one 26 times for what I have tied up in it. I don't think I have dug 26 trenches in my life.

Things like my tractor and skid steer I will always own as they get used a lot but other things I am thinking of thinning out. If it doesn't get used at least five times a year it is probably cheaper to rent.

 

[lennyzx11]

Renting something you use all the time is a huge waste of money but buying something you don't use often is probably a bigger waste.

How do you guys go about deciding?

I own tons of equipment but some things may get used a few times a year. I have a $40,000 dump truck for example. When first bought it was used daily for months but it has been used maybe four times this year. Heck No more than I use it I could hire a dump truck for $75/hr and it would be cheaper than what I pay in registration and insurance. Thinking about selling it and just hiring it out when I need one. I own a trencher. Probably worth 4K. I have dug two trenches this year. I can rent one for around $150 a day I think. If I sold it I could rent one 26 times for what I have tied up in it. I don't think I have dug 26 trenches in my life.

Things like my tractor and skid steer I will always own as they get used a lot but other things I am thinking of thinning out. If it doesn't get used at least five times a year it is probably cheaper to rent.

I hear you. I was against renting as I figured "if I bought it I had it" came close to pulling the trigger on buying a 3 point backhoe then I was worried about it not being able to do the job I looked at trading my 3301 in on a TLB. After the sticker shock on both those routes, I went to my local rental company and rented a large backhoe. Delivered and picked up for less than a thousand bucks for a week.
I was done with all my projects I had stacked up in 2 days! Spent the rest of the time popping trees and stumps and rocks, digging a hole to drop stumps in to bury them in the back corner, clearing trails, digging footings and trench for septic and just generally "using up my minutes". If I had been serious and got after it on day one, My 8 acres could have looked like a parking lot in the 7 days. But I don't want that just some general improvements. Better than I could ever rationalize buying one.

Yeah, I think needing something over 5 times a year would be a good trigger point.

 

[edgarrian]

Something I always rent is an excavator when I need one. This will be my second time this year as far as renting one. Considering the price tag for one its much cheaper to rent. I have a scut I use often on our property. I could get the backhoe attachment for it but I think they are junk and just don't run smooth, also very time consuming. i did look into buying a mini excavator and man they are expensive. I can remember I had 12,000lb machine with a blade that I purchased for 35k back in I think 01. Now that machine used is probably 65. Crazy if you ask me.

 

[Soldier415]

I use my tractor for 90% of my property maintenance needs. I thought about getting a skid steer but for the price vs. how much I would actually use it it makes more sense to rent one. same with excavator

 

[Dadnatron]

One thing I am finding out... is when you buy it... you have to store it somewhere. At this point, I am using everything I have purchased. But I am finding out that I don't like the equipment setting all over the place. I will be putting in a graveled 'pad' to put things on in a year or so, so things will have a place. But I have really recognized that I have to find a better way to 'store' the things I have because I am beginning to look like an Ag-equipment lot.

As far as rentals... I like renting construction equipment. I've rented a D7, Mini-ex, BIG vibratory roller, and a CTL. I'd like to own a CTL, but at this point, I have too many other things that I need to accomplish.

I'd rent more... but there are no AG rentals in my area. I would pay good $$$ for the use of a heavy 14-16' disc. I'd also pay for a good 3 straight shank winged subsoiler rental. These are things I only need every few years at the most. But there is no one around who rents or that I can find to work the ground, at least for less than I can just buy the machine and do it myself.

The make or break point for me is $$$:availability ratio. Most of the time, I purchase because there simply isn't a rental available.

 

[CincyFlyer]

There are a lot of things that I may use once or twice a year that I literally cannot rent in my area! Find me a PTO powered 3-point six-foot hammer flail! But in the long run, I'm getting ready to retire in a few years, and I'm going to have more land than my current tiny plot, so if I buy something, I'm looking ahead.

 

[ning]

If I only occasionally need something and I can easily plan out when I'll need it, I'll rent it. Example: This spring, we rented a CTL with a 36" auger to dig 50+ holes. This wasn't something I suddenly needed to do, and I won't need to do it often, so it was a perfect rental opportunity.

If there's something that on any given day I may find myself needing to use, I'll buy it. Example: my CUT's FEL and backhoe. The FEL is an obvious example to many here, but the backhoe is probably not the greatest economic choice even for me, but my reasons were that I often find myself needing to dig for whatever reason, and half of the year here my ground is very hard clay.

I don't want to save up jobs needing digging to make renting a backhoe economical, so without one of my own, I'll end up digging it by hand - back-breaking, slow, and hot. For me, having the backhoe is a win, because I can actually enjoy the work, it's quick, and it'll get done when I need it and I don't have to wait.

Currently not sure about a log splitter; I have a decent pile of rounds, but it's probably not worth spending $1k on a new splitter, and my local craigslist doesn't have any decent ones worth buying used. I may just rent a splitter, or I may just split by hand a half hour here and there.

 

[2458n]

Home made log splitter at auction Saturday sold for 47 dollars, just the beam,cylinder,and control valve. The hyd pump, tank, filters were set to run off a 110 John Deere riding mower. The power unit sold for 50 dollars. **** cheap for a additional harbor freight motor and a couple of lovejoy couplings. Free standing unit for 250 dollars. That is how I try to buy stuff.

 

[oosik]

I have my M6040 tractor plus ten implements. From a chipper to a grapple. The situation here is that there is no place that rents tractor implements. You either buy or go without. You can rent a small tractor with FEL, bucket and maybe even backhoe but nowhere rents basic implements.

 

[CalG]

If it appreciates, BUY
If it depreciates, lease or rent
Classical lines

For me, (and I like machinery) If it pays the payments on the money, (even if that is just on the books) Keep it.

If not.... lighten the load. one less thing to think about.

ETA

It's GOOD to have a rule. Make one and follow it! It's good for your mental state.