Mike AndesFounder, Augusta Lawn Care and Homeworks · Founder of Homeworks and Augusta Lawn Care

Should I Buy My Equipment?

25 Feb 2022 · 1 min

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Mike Andes explains when buying equipment is financially preferable to renting. He emphasizes evaluating cost per hour of use, tax advantages, and resale value; recommends buying when utilization is high (example: ~2,000 hours over three years) and avoiding purchase when utilization is low (example: ~60 hours over three years for an excavator). He also notes that well-maintained used equipment can last a very long time.

Questions this video answers

About 60 hours over three years.

About 2,000 hours over three years.

Chapters

It is actually cheaper in the long term if you buy the piece of equipment, assuming that you use it quite often. What's also cool about when you buy equipment is when you don't need it anymore, you can sell it and get a return on that investment. You don't have to wait on a rental company. There are massive tax advantages to buying a piece of equipment. What we're really looking for is the cost per hour of use. And that's why I said if you're going to use it for 60 hours over the course of three years, not a good decision for an excavator. Now if you're going to use it for 2,000 hours over the course of three years, very good decision to go buy the piece of equipment. One thing that a lot of dealers won't tell you is that if you get a used piece of equipment or slightly older piece of equipment and just take really good care of it and have good maintenance, they last for a very, very long time.