This blog will look at the benefits of tool hire. Each year that you own a particular tool, its value decreases based on its age. The amount of depreciation is worked out based on the replacement cost of a tool and its current market value. Wear is also taken into account as it can greatly impact the value of a tool. As tools depreciate and lose value, they also become less reliable. This means that additional time and costs need to be spent on your equipment. Therefore, it is important to consider the pros and cons of buying vs hiring as tool depreciation can affect your business in several ways.
Buying vs Tool hire
The debate around buying or hiring tools presents itself in various industries. Buying may seem like the logical solution when it comes to larger equipment or tools that you regularly use as they would seem to be worth the investment.
However, buying does not only incur a much higher initial cost, but it also involves further costs and concerns that can affect you. Such costs must be fully understood and considered in your decision to buy or hire a tool to future-proof your business.
The hidden costs of buying
As your piece of equipment depreciates and loses value, it will also become less reliable. This means that you may need to repair parts of your equipment and you will be fully liable for the costs. Fixing costs can be high particularly on larger pieces of equipment, which can significantly affect your cash flow and potential profits. Not to mention the time you have to spend on maintaining your tools to avoid potential issues.
Storage is another hidden cost of buying your own tools and can also speed up the depreciation of your equipment. Hiring companies store the equipment in dry and warm areas, whereas you may not have these facilities available. Tools that are stored in a cold and potentially damp place can make your tools depreciate even faster and may mean that you will have to replace them sooner. A damp and cold storage place can affect electric components and also cause parts of your tools to rust.
The takeaway of Tool Hire
If you are thinking of buying a tool outright, you should think twice to establish whether the advantages truly outweigh the costs. It is important to consider all the costs that buying a piece of equipment can incur and how well your tools will fare in the light of depreciation. A tool that becomes older and loses value will become increasingly expensive to maintain and repair. It will be significantly more difficult to sell.
Nowadays, tool hire is very affordable and can help you avoid the issues related to depreciation. There is no need to think about potential expensive repairs or having to fully replace a tool once it no longer functions properly. Hiring will save you and your business time and money in the long term.
If this blog has piqued your interest in the benefits of tool hire as opposed to tool ownership please contact us to view our vast array of top-of-the-line tools at your disposal.