It may be tempting to think of buying a crane but one must consider a number of factors as owning and maintaining a crane is not as easy as owning and maintaining a car! The working life span of a well maintained and serviced crane is estimated to be around 25 years though it is not impossible to find those that have been toiling for 40 years! So it is advisable to keep in mind your company’s future too instead of focusing just on the project at hand! If you don’t see much work load for your crane this long, consider buying a ‘used’ crane.
In the case you buy new or used crane bear in mind that it will be your responsibility to service and replace all parts of the crane as and when the warranty runs out. You will have to pay for the erection, climbing, operating, supervising and dismantling of the crane. You will have to take insurance, comply with all safety regulations etc.
Here is why hiring or leasing crane/cranes in Brisbane, makes more sense:
- No Capital Outlay/Expenditure/Investment
Cash purchases deplete the company’s cash coffer; hamper the cash flow and impact the balance sheet negatively. Hiring will also save you the trouble of having to buy a crane, ship it to your location and maintain and service it at your own expense. With a hiring contract all this will be handled by the hire company throughout the extent of your project.
- Limited Use Justifies Hiring rather than Purchasing
Hiring a crane in Brisbane gives you the highest flexibility as you will not end up with the equipment and you will return it after use. If you are not in long term need of a crane and you would not be using it to its fullest capacity it is always advisable to hire than buy. Why burn a hole in your pocket for something you won’t normally use at least 52 weeks a year? Why pile up your inventory?
- While dealing with a Specialty Crane it is best to hire
Floating cranes or aerial cranes or straddle cranes or a Digger Derrick are not used every day. If a crane is needed only for a one time or an occasional task and not regularly it would save a lot of money if you hired it instead of buying it.
- New and quick technological advancements and changes justify hiring
The likelihood of any equipment being leased goes up with the rapid rate at which that equipment tends to become obsolete! Hiring equipment or leasing it is a hedge against its obsolescence.
- Tax benefits
Hiring/Leasing also has latent tax advantages that give Brisbane based companies the ability to claim the expenses as business expenditure and get them faster tax write-offs.
Whether to buy or hire would depend on market conditions, volume and strength of your business, your requirement, your financial strength, tax implications and your future prospects. But these days companies world over, whether mom & pop shops or the Fortune 500, prefer hiring/leasing to buying in order to stay ahead in the game.