Deciding between buying and renting a bucket truck can be difficult. Some dealers will try to push you into one or the other so they can increase their bottom line. Don't be tricked, decide whether or not to buy or rent bucket trucks based on your needs. This article will help you with your decision and possibly save you thousands of dollars.
Your Plans
Your longterm plans will ultimately decide whether or not to rent. If you are going to use the truck for a job or two and less than 6 months, it is probably better to just rent. If you're in this situation and buy a truck, you could end up having a truck sitting idle that isn't making you money but costing you money.
If your business has multiple jobs lined up and plan to use the bucket truck for future jobs , you should give more weight to purchasing a reconditioned or used bucket truck. When you buy a used or reconditioned bucket truck, it will allow you to get into the truck for a lower pricepoint than buying new. Usually only large operations buy new bucket trucks. They do this for tax purposes and fleet management mostly.
Tax Issues
Taxes should not sway your decision at all. There are many common misconceptions regarding taxes when renting or buying. You can deduct your costs for renting as operating expenses. Doing so will certainly relieve some costs of the rental. If you buy a bucket truck, you can deduct depreciation. Depreciation is based upon your accounting method but in regards to bucket trucks, you should significantly offset your costs of buying with depreciation.
The Costs of Buying vs. Renting
Renting is certainly a much costlier choice when compared to buying. However, if you only need to use the bucket truck a handful of times and for quick jobs, it is definitely the way to go. Insurance will cover rentals so if you happen to damage your equipment, you won't have to pay exorbitant amounts of money in repairs. In the case of a bucket truck rental, you need to have commercial insurance before you drive off the lot. If you buy a bucket truck, you are required to pay more upfront and be held to a longer commitment. Requirements like these are definitely not bad if you have a long term plan involving using your truck for multiple jobs. You want to get the best ROI or return on investment.
Your Decision
To sum it up, renting a bucket truck is the best option for the short term and don't have plans to need bucket trucks in the near future. Buy a bucket truck if you have a relatively steady business and plan to use the equipment multiple times over a longer period of time. Tax incentives for both renting and purchasing are substantial so don't let taxes change your decision.
Your Plans
Your longterm plans will ultimately decide whether or not to rent. If you are going to use the truck for a job or two and less than 6 months, it is probably better to just rent. If you're in this situation and buy a truck, you could end up having a truck sitting idle that isn't making you money but costing you money.
If your business has multiple jobs lined up and plan to use the bucket truck for future jobs , you should give more weight to purchasing a reconditioned or used bucket truck. When you buy a used or reconditioned bucket truck, it will allow you to get into the truck for a lower pricepoint than buying new. Usually only large operations buy new bucket trucks. They do this for tax purposes and fleet management mostly.
Tax Issues
Taxes should not sway your decision at all. There are many common misconceptions regarding taxes when renting or buying. You can deduct your costs for renting as operating expenses. Doing so will certainly relieve some costs of the rental. If you buy a bucket truck, you can deduct depreciation. Depreciation is based upon your accounting method but in regards to bucket trucks, you should significantly offset your costs of buying with depreciation.
The Costs of Buying vs. Renting
Renting is certainly a much costlier choice when compared to buying. However, if you only need to use the bucket truck a handful of times and for quick jobs, it is definitely the way to go. Insurance will cover rentals so if you happen to damage your equipment, you won't have to pay exorbitant amounts of money in repairs. In the case of a bucket truck rental, you need to have commercial insurance before you drive off the lot. If you buy a bucket truck, you are required to pay more upfront and be held to a longer commitment. Requirements like these are definitely not bad if you have a long term plan involving using your truck for multiple jobs. You want to get the best ROI or return on investment.
Your Decision
To sum it up, renting a bucket truck is the best option for the short term and don't have plans to need bucket trucks in the near future. Buy a bucket truck if you have a relatively steady business and plan to use the equipment multiple times over a longer period of time. Tax incentives for both renting and purchasing are substantial so don't let taxes change your decision.