When it comes time to purchase equipment, where do you look? Buyers often turn to traditional dealers who offer both new and used equipment for sale, but there’s another option that shouldn’t be overlooked: purchasing formerly rented equipment from rental companies, such as United Rentals. As these dealerships update their rental fleets with new machines, they need to move on from their used equipment, which can create great deals for consumers. A number of rental companies sell their previously rented machines on Equipment Trader – from air compressors and excavators to loaders and scissor lifts – so today we’re breaking down the advantages of buying equipment that was previously a rental unit.
1. Financial Savings: In general, buying formerly rented, used machinery is much cheaper up-front than buying new equipment. A machine typically decreases in value between 20 and 40% in its first 12 months, but then depreciates very slowly after that initial drop, which means you’ll get a nice discount when buying it on the resale price and, if you decide to later sell the machine yourself, you may be able to sell it for close to the same price for which you bought it1. These big savings are especially helpful for new and growing companies looking to buy more machinery for less, land more jobs, and make more money. Reputable rental dealerships will offer multi-year purchase warranties, often with same-day proposals, as well as leases and loans.
2. Guaranteed Quality: Quality rental companies are committed to providing their rental customers with professional machinery, which means they have high standards of equipment maintenance that strictly conforms to OEM standards and recommendations2. So, when you buy from a rental dealership, you know you are likely purchasing equipment that has been expertly maintained. Rental companies will also have records of oil changes, other maintenance, repairs, and hours of use, helping put your mind at ease about the quality of the machine you are purchasing.
3. Diverse Selection: Previously rented equipment gives your business flexibility, as rental dealerships typically have large fleets and will be able to offer you a wide range of choices. You also have flexibility in repairing previously rented machines, as brand-name equipment parts will be readily available from shops and dealerships, or straight from the manufacturer if the machine isn’t too outdated1. This equipment can also be useful as a simple backup machine as well, giving you flexibility when an unexpected breakdown happens during a job that just can’t wait.
4. Service & Repairs: Another upside of buying equipment from rental companies is that many will offer complimentary inspections, helping you identify potential issues before a breakdown. In addition, rental dealerships may also offer warranted repairs on qualifying components. If you buy from a large company, like United Rentals for instance, you could even be able to access service for the machine at any of their locations across the country2.
5. Machine Familiarity: Used equipment generally comes with known performance capabilities and a dependable life-cycle. With the machine’s telematics and/or records of maintenance, you should be able to approximate how well the equipment will work and for how long1. Knowing you can rely on a formerly rented machine gives you confidence in planning and executing your work. New equipment can sometimes slow work down with technological and operational learning curves, or with worries about even slightly dinging the new machine; with reliable used equipment you can get right to work.
Buying used machinery from rental dealerships may not be the first option buyers consider, but it can be a great choice for many looking to acquire reliable equipment. If you’re looking to buy used equipment from a rental company, check out the wide selection on Equipment Trader. And we want to hear from you – have you purchased used equipment from rental dealerships? How was your experience? Let us know in the comments below.
About the Author
Ethan is a Content Curator for Trader Interactive, serving the commercial brands Commercial Truck Trader, Commercial Web Services, and Equipment Trader. Ethan believes in using accessible language to elevate conversations about industry topics relevant to commercial dealers and their buyers.