How Much Does A Mini Excavator Cost to Rent?
The profitability of any construction activity largely depends on the number of hours it takes to complete the project. The pace of work can be increased by acquiring better equipment. Since the construction often involves digging trenches for foundations and laying down beams, mini excavators are often needed for the job. It is feasible for business owners to rent a mini excavator for short term projects to save capital. How to rent a mini excavator? Here are some things to keep in mind.
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Since the time for completing a construction project continues to shrink, companies tend to gain more from renting equipment. Thus, compact or mini excavators have turned into a rental item that is on demand in bulk. This is especially true for models of the sizes 4 to 6 tons.
Factors Affecting Mini Excavator rentals
Capital investment is a crucial factor in the success of the project. While the project is ongoing, the pace is uneven, and so a fluid capital is essential and rentals are able to give that margin to project owners.
Long term rental Vs. Ownership
- Rental Cost is only about 3% to 4% of the total cost of ownership for mini excavators.
- No cost of maintenance
- No logistics or storage costs (Some rental services may charge a small amount for transportation of equipment to site)
- No sales tax
· In case of owning machinery, a log book has to be maintained of whatever operations were carried out on it
· When you rent a machine, log books are the responsibility of the rental service
· Rental bills are seen as operating costs and not covered by taxes
· No worries about cost depreciation
· No added cost of maintenance and insurance premiums
· Maximum flexibility
· No long term commitment needed to complete a job
· Suitable for businesses that cater to a diverse range of projects
Sample Cost of Renting a Mini Excavator
3.5-ton excavator ~ rent @ $250 a day which is equivalent of $2,250 per month
$100,000 machine ~ rent @3.5% to 4% of the total cost of the machine which is equal to:
· $4,000 monthly
· $1,350 weekly
· $475 daily
· $52,000 per year (full-year rental contract)
Things to Know Before You Rent
- Equipment updates after every few years
- For business owners that deal with projects of varying nature, this is an important factor to consider because they cannot make any long term rental commitment for renting a single machine.
- Align the equipment with the timeline of the project
- With a rent, it is easy to extrapolate and estimate the cost of the project and allow the business owner to simply walk away from the equipment after completion. If the project is extended, the rent can also be revised.
- Current cash flow suitable for equipment needs
- Proper and timely cash saving can lead to the purchase of required equipment or help in leasing the equipment such as mini-excavator which is too expensive to buy out right.
Sample Cost of Mini Excavator Rental
Rubber Track Mini Excavator
- For Regular Projects ~ $210 per day, $830 per week and $2450 per month
- For Corporate Projects ~ $190 per day, $780 per week, $2100 per month