What To Consider When Purchasing Construction Equipment

In any construction job, you need equipment. That’s obvious. But each construction job has its own set of tasks, challenges, budget, and other variables that can make a big difference in what, exactly, you need to buy to get the job done. Should you buy used or new? Should you buy a machine to do each discrete task, or is there one machine that can accomplish several tasks for you?

At Stribling Equipment, we’ve put together this brief guide to help you understand how to determine what construction equipment you need to buy to keep your project on track, on budget, and making the kind of money you want to make. And when you’re ready to shop for construction equipment, please come see us—we’ve got 20 locations throughout Tennessee, Mississippi, and Arkansas, and our experienced sales team will be happy to put the pieces together for you so you get the job done right.

What is My Job?

The first thing you need to do when considering what construction equipment you need for your job is pretty basic: what are the discrete tasks that need to be accomplished for this job to be complete? Am I building something? Am I excavating soil from a large hole in preparation for pouring a swimming pool or pond? Am I demolishing something? Is it some combination of those? Once you’ve got those basic task delineations hammered down, then you can start looking at what kind of equipment you need. A bulldozer is a great tool for moving dirt and rocks, so that’s something to consider, but then you also need to ask—where am I moving the dirt and rocks? Am I dumping them into a truck? What kind of truck? What kind of volume of dirt and rocks do I need to move?

Obviously these are the basic questions that any good contractor will know the answers to pretty quickly, but they serve as a good example of how to break down your task list into chunks that will allow you to budget efficiently for the construction equipment you need for the job.

Rent or Buy?

An important question for your budget: Should you rent or buy the equipment you need? Buying gives you the peace of mind that you can use the equipment for any future projects you might have. Also, lower interest rates and tax incentives might make buying more attractive than it once was. That construction equipment will also be considered an asset on your balance sheet, and you can sell the equipment once you no longer need it. That could lead to tax breaks and other incentives. Owning also lets you set your own schedule without worrying about having to return the equipment by a certain date. Plus, you can rent them to others when you’re not using them.

On the other hand, renting provides its own benefits. If you don’t think you’ll need a piece of construction equipment for more than one job, or you don’t think you’ll use it enough to justify the cost of buying it, then renting makes sense. You can also pass the rental cost on to the customer as an overhead cost for the project. Rental expenses are considered business expenses so you can deduct them. Renting also allows you to avoid the added cost of insurance and maintenance on construction equipment you own. And if you don’t have a big budget to buy heavy equipment, you may be able to rent something with more power or features than you’d be able to get if you tried to buy a similar machine.

Of course, these are only a few considerations you need to think about when budgeting for the equipment you need for your job. Each job comes with its own set of challenges and tasks, and you’ll have to put all the pieces together. Luckily, our friendly team at Stribling Equipment is here to help you. Come visit one of our dealerships in Tennessee, Mississippi, or Arkansas, and let us see what our selection of construction equipment for sale can do for you.