If you’re a rookie just getting started with sewer rehabilitation, renting or leasing will help you save costs upfront while still allowing you access to the equipment you need. It also gives you the opportunity to test out different equipment and use the latest models and tech before making a purchase. Renting is the most flexible option, but will have less predictable expenses and make budgeting more difficult. Many vendors have a rent- or lease-to-purchase option that can also be a smart way to invest in equipment while spreading out startup costs.
Sewer rehabilitation is brutal work that wears out equipment quickly. Managing your cost-of-ownership includes understanding the repairs and service all equipment needs over its lifetime. When renting and leasing, you don’t have to worry about repair costs. You can even avoid downtime as owning companies often supply temporary replacement equipment when something needs servicing. On the other hand, buying equipment means you are responsible for repairing the machinery yourself. Having full control of maintenance and repairs means service can be completed to your standards, but that can be costly. Renting avoids these expenses altogether.
Leasing and buying are often associated with tax benefits. If you’re a small- to medium-sized private for-profit company, Intuit reports that leasing expenses can likely be categorized as a 100% tax-deductible operational expense under the 179 IRS Tax Code. Some buyers may also qualify for tax incentives, while others can leverage a depreciation deduction for the equipment. Renting equipment does not have this advantage.
There are many more considerations that should be taken into account, so take your time when deciding how to invest in equipment. Ask questions so you can be confident it your choice. Pipeline Renewal Technologies has renting, leasing and buying options, so reach out today to find the best fit for your crew: