Published on August 30th, 2019
A skid steer is a common sight in the construction industry—and an essential one at that. This multi-purpose heavy duty machine can be used for many tasks; from digging to landscaping. It can pick up, carry and off-load a sizeable volume of materials and rubble making it a worthwhile addition to any construction project.
If you’re starting up a construction company, you might be conflicted whether to hire or look for a skid steer for sale. So which one is the best option? Large companies most probably have the financial resources to purchase this machine, but unfortunately the same can’t be said for the start-ups.
To help you with your decision, we’ll outline a few factors you must consider before reaching a final verdict.
Five Key Factors To Consider
1. Do You Have The Financial Resources To Own A Skid Steer?
The first—and probably obvious—question you must ask yourself is if you have the budget to own a skid steer.
Needless to say, buying equipment of this kind is rather expensive. And when you’re just starting out as a business, chances are your budget is already stretched. After all, the skid steer isn’t the only equipment you require in your new company.
If your budget is running thin, then paying the full cash price all at once can be a tall order. You can consider purchasing the equipment on a hire-purchase basis. And yes, most manufacturers give you the option to purchase the equipment over time. You do however need to make an initial deposit which you must determine if you can afford.
While this option makes financial sense, also consider if you can keep up with the monthly payments—bearing in mind that they’ll be a little inflated due to interest. You don’t want the instalments to drain your already limited cashflow over time.
If your budget is extremely limited, a more practical solution is to hire the equipment for a specific project. You can always purchase the equipment as your business grows and you start raking in the profits.
2. Frequency Of Usage
Before making a final decision, you also need to consider how often you’re likely to use this machine. Will you be using the same machine on most of your construction projects?
If you answered yes, then purchasing one will make more financial sense—finances allowing of course. Chances are that constantly hiring the same equipment each time you have a certain construction project will end up costing you more in the long run.
But bear in mind that skid steers are available in different sizes. As a result they’re designed to work on projects of varying sizes. If you commit to buying a small one, what happens if you get a big construction project?
If you do different types of work hiring will be a more practical solution because you’ll have the convenience of versatility. Be sure to first consider the scope of your operations before committing to buying one.
3. Do You Have Enough Capacity To Store The Equipment?
Buying the machine is the first step. But do you have adequate storage capacity? In other words do you have a warehouse—or yard—with sufficient space to store the machine?
Most small construction companies start small because they have limited resources. A feasible option in this regard is to look for small premises until the business grows. If that’s the case, then you probably don’t have the capacity to store a skid steer. Settling for machine hire is the best option in this case.
Here you get to hire what you need only for the specified project. This reduces the worry of keeping your sizeable investment safe when not in use.
If however, you’re one of the few start-ups that have managed to secure a large premise then feel free to buy your equipment.
4. Do You Have The Capacity To Transport It?
Aside from storage, do you have the capacity to transport the skid steer to the construction site? To transport this machine, you’ll need a flatbed truck or alternative transportation method.
If you have the capacity to transport the skid steer, go ahead and purchase one. If not, hiring is your best option.
From the above, it’s clear that the decision to either hire or buy a skid steer is entirely up to your unique scenario.
Incorporate the above mentioned factors to make an informed and wise decision. And whether you decide to hire or buy, make sure you look for a reputable manufacturer and brand.
Read the fine print on the terms and conditions including warranty information. You’ll thank us later.