Mini excavator: buy or rent?
The break-even point depends on days of use, the rental price and what the machine is worth when sold.
The basic sum
Divide the yearly cost of owning the machine (price minus resale value, spread over the years of use, plus maintenance, insurance and storage) by the daily rental price. The result is the number of days a year beyond which buying is cheaper.
Calculator
Use the break-even calculator with your real figures. You will also find an instalment calculator if you are going to finance the purchase.
When buying usually pays
- If you will use it regularly through the year.
- If you need immediate availability without depending on the rental firm's stock.
- If you can rent it out to others when you are not using it.