Rent, buy, rent-to-own or lease?
What makes sense? Capex vs Opex? Should You Rent or Buy a Tool?
A torque multiplier is a commonly rented tool
There is often an internal debate between buying a tool and renting the same tool when the occasion for it arises. Sometimes even once you decide to rent a tool the rental price has you eyeing a cheaper or used model to purchase. Generally speaking, if renting the tool is on your radar you should probably rent the tool. It will not hurt to research buying a used or new tool, but ultimately you will probably find the value gained by buying does not exceed the added cost of owning a tool.
To know what option, buying or renting, is the best for you to start by gathering this information:
The exact cost per day, week, month to rent the exact tool you will be renting.
Divide the total cost you will pay rent by the number of days, weeks, months you will actually be using the tool.
Set accurate times for shipping and returning
Consider taxes and other fees
The number of days, weeks, months you will likely use the tool over the next five years
Include the number of days, weeks, months you will be using the tool during your upcoming project.
This can be a difficult number to measure. You must be as honest as possible with yourself to get an accurate result
It is very possible you will not be using this tool beyond your upcoming project for the next five years
Five years is a less than average life expectancy for modern multipliers under normal use, regular maintenance and annual calibrations.
If you feel certain the tool you want to buy will last more than five years feel free to increase the number of years
The exact cost of the tool you would buy
Add shipping and possibly sales tax to your cost
Next, you need to take the numbers you have gathered and then determine the actual rental cost over time :
Rental cost over time = Cost per day, week, month to rent x Number of days, weeks, months you will be running the tool over the next five years
Now compare the rental cost over time to the cost of the tool you would buy. If the cost of the tool you would buy is lower than the rental cost over time then you should probably buy the tool if you have the cash/"Capex" to do so. If the cost of the tool you would buy is higher than the rental cost over time then you should probably rent with "Opex" money and use the tool for your upcoming project.
For example, I need a battery-driven torque multiplier to torque down 295 bolts with 850 ft-lbs during my next project in a paper mill. The two hundred ninety-five bolts will take me three days to tighten them including waiting times and usual delays.
For the battery-driven torque multiplier, I want to rent my cost per day to rent for my 3-day project is $250. Over the next five years, I estimate I have 50 additional days of multiplier work to do in my plant during regular shutdowns and maintenance work. Including my current project, I will likely use the multiplier 53 days in the next five years. At $250 per day to rent my rental cost over time is $13,250. The multiplier I would want to buy costs a total of $7,500.
So, for me, the best option, in this case, is to buy the multiplier. If I were to rent the multiplier I would spend almost twice as much money over five years than I need to.
We hope our guide has helped you decide to rent or buy the tool you need.
alkitronic Inc. is offering the options to buy, rent, rent-to-own or lease any tool in our portfolio. https://www.alkitronic-na.com/products
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Contact form: https://www.alkitronic-na.com/contact