---
title: The Financial Advantages of Renting Heavy Equipment
description: Examaning some of the reasons why renting your heavy equipment instead of buying it could be the right choice for your construction company.
image: http://ataoffers.atgtire.com/hubfs/dreamstime_s_9451146.jpg
---
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Posted by [Yokohama-ATG Team](https://yohta-blog.yokohama-oht.com/author/yokohama-atg-team)
Aug 15, 2016 2:36:00 PM
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## [The Financial Advantages of Renting Heavy Equipment](https://yohta-blog.yokohama-oht.com/the-financial-advantages-of-renting-heavy-equipment)
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# What You Need to Know About Renting Heavy Equipment
Construction companies these days are under intense pressure to finish one job and move on to the next. In many parts of the country, there is more work than people to do it, meaning construction companies that can stay on schedule or finish ahead of schedule are poised to get more jobs, get better prices, and increase profitability. During times like these, when business is good, many construction companies default to buying equipment, but buying isn’t always the right decision. Below, we examine some of the reasons why renting your heavy equipment might be the right choice for your construction company.
**No upfront cost**
Perhaps the biggest benefit of renting over buying is the reduction in upfront costs. There is no avoiding the fact that buying a piece of heavy equipment is extremely expensive, and can have an enormous impact on your company's cash flow. Renting equipment presents a solution to your construction company’s needs without having a gigantic impact on its ability to fund other projects and requirements.
**No maintenance or upkeep**
Maintenance and upkeep of a piece of heavy machinery can be expensive, time consuming, and, most notably, expensive. Between routine maintenance, inspections, and testing, the costs of owning a piece of heavy equipment can escalate quickly. These costs can get especially high when it comes to owning a whole fleet that is constantly requiring work. When renting machines, the rental company takes responsibility for the maintenance and repairs of the equipment, eliminating those expenses completely.
**Renting is a tax deduction**
Buying a piece of heavy equipment is considered a capital expense and is not tax deductible in the year it is purchased. However, heavy equipment rental is regarded as a business expense and is fully deductible. Furthermore, rental payments are seen as a pre-tax business expense, helping reduce your company’s tax exposure.
**No depreciation**
As soon as your company buys a new piece of heavy equipment, it begins to lose value. Knowing when to sell your machinery and how much you need to get for it to make the most of your investment are difficult questions to answer. Renting equipment avoids having to deal with these issues, leaving those decisions to the rental company.
**You get the latest and greatest equipment**
Innovation and technology are affecting everything from our phones to our televisions to our construction equipment. Technology is moving faster than ever, and today’s high-tech machines could be obsolete in a few years. Even worse, it could be deemed unsafe, undesirable, or illegal. Renting your equipment puts the burden of obsolescence in the rental company’s hands. By renting equipment, construction companies can not only use the latest in high-tech machinery, but they can also test run new technology before they commit to buying it.
[](https://cta-redirect.hubspot.com/cta/redirect/403584/e3c46187-b8bc-4496-aed2-59ee3f4453dc)
Renting machinery can provide enormous financial benefits to today’s busy construction companies. We have the perfect solution for bustling rental businesses in need of new tires. Our [Galaxy](http://www.atgtire.com/GalaxyPrimex.aspx) brand of construction tires have a reputation for being as hard working as your machines, and have historically delivered an incredibly low total cost of ownership—helping rental companies make up for the expenses construction company owners are looking to avoid.
Topics: [Construction Industry](https://yohta-blog.yokohama-oht.com/topic/construction-industry)
## AboutYokohama-ATG Team
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