7 Types of Equipment You Should Always Rent, Never Buy (And the Math to Prove It)

By the team at Beehive Rental & Sales — Helping Southern Utah make smart equipment decisions since 1994.

The #1 type of equipment you should rent instead of buy is excavators — with purchase prices for compact models through full-size machines representing major capital investments, most users would need to operate them 200+ days per year just to break even versus renting. This guide breaks down the 7 equipment categories where renting beats buying for contractors and homeowners alike.

TL;DR: Rent These, Don't Buy

If you're not hitting these usage thresholds, you're losing money by buying. Call (435) 628-6663 for current rental rates.

The Hidden Costs of Equipment Ownership

Before diving into specific equipment, understand what buying really costs. The purchase price is just the beginning:

The True Cost of Ownership

The reality: Equipment ownership costs 20-30% of purchase price annually when you factor in depreciation, maintenance, and insurance — before you use it once.

With rental, you pay only for the days you actually need the equipment. If you're using equipment less than 60% of working days, you're likely paying to store a depreciating asset.

The Hidden Benefits of Renting

What you gain by NOT owning:

• Always the right tool — Rent exactly what the job needs, not what you happen to own
• Always maintained — Professional rental equipment is serviced regularly
• No storage hassle — No trailer, no yard space, no security concerns
• No repair surprises — Equipment breaks down? It's the rental company's problem
• Tax advantages — Rental is a fully deductible business expense; depreciation is complicated
• Cash flow preservation — Keep capital available for growth, not tied up in iron

1. Excavators — The Ultimate Rent-Don't-Buy Equipment

Break-even: 200+ days of usage per year

Excavators are the poster child for rental making more sense than buying. Here's why:

The Math

Excavator ownership costs include depreciation (typically 20% per year), maintenance (around 7%), insurance, and storage. These annual costs alone require significant usage to justify — before you even factor in the capital investment.

To actually save money by owning, you'd need consistent usage of 200+ days annually. Most contractors don't hit that threshold, and homeowners definitely don't.

Call (435) 628-6663 for current excavator rental rates.

When Excavator Rental Makes Sense

• Project-based work — Dig a foundation, install a pool, then done
• Occasional landscaping — Major yard work 2-3 times per year
• Seasonal contractors — Heavy usage some months, none in others
• Variable project sizes — Sometimes need mini, sometimes need full-size

When Buying MIGHT Make Sense

• Full-time excavation contractors with daily usage
• Large operations that can utilize equipment across multiple crews
• Specialized machines that aren't readily available for rent

Bottom line: Unless you're running an excavation company, rent the excavator.

2. Skid Steers — The Versatile Money Pit

Break-even: 150+ days of usage per year

Skid steers are incredibly versatile — which makes people think they need to own one. That versatility actually argues FOR rental.

The Math

Skid steer ownership includes depreciation (typically 18% per year), maintenance (around 8%), insurance, and attachment storage. These annual costs require consistent usage to justify the investment.

Factor in the capital investment and opportunity cost of that money tied up in equipment, and you need substantial annual usage just to break even.

Call (435) 628-6663 for current skid steer rental rates.

The Attachment Trap

Here's what skid steer buyers don't consider: attachments.

A skid steer without attachments is just an expensive wheelbarrow. You'll need buckets, pallet forks, augers, trenchers, brush cutters, grapples — each adding significant cost to ownership.

Suddenly your skid steer investment balloons significantly — and you're still not fully equipped for every job.

Rental solution: Rent the skid steer AND the specific attachment you need. Different project, different attachment, no problem.

When Skid Steer Rental Makes Sense

• Landscaping projects — Grade, move material, install features
• Property maintenance — Seasonal cleanup, snow removal (yes, they rent in St. George too)
• Construction site prep — Before and after the heavy excavation
• Material handling — Moving pallets, equipment, supplies

3. Concrete Equipment — Specialized and Expensive to Own

Break-even: 60+ days of usage per year

Concrete equipment is a trap because each piece serves a narrow purpose, and concrete work is project-based by nature.

The Full Concrete Kit

To properly handle concrete work, you need: concrete mixer, concrete vibrator, power trowel, bull float and finishing tools. Each piece adds to ownership cost — and most sit idle between projects.

The Reality of Concrete Work

Most businesses and homeowners pour concrete occasionally:

• A driveway every few years
• A patio once
• A foundation during construction
• A shed slab when needed

For a typical driveway pour, equipment rental costs a fraction of owning equipment that sits in your garage for years.

Call (435) 628-6663 for current concrete equipment rental rates.

When Concrete Equipment Rental Makes Sense

• Any residential concrete project — Patios, driveways, walkways, slabs
• Occasional commercial pours — Unless you're a concrete contractor
• Specialty finishes — Rent the specific trowel/finish equipment needed

4. Compaction Equipment — Critical but Rarely Used

Break-even: 50+ days of usage per year

Compaction equipment (plate compactors, jumping jacks, rollers) is essential for proper base preparation — but how often do you actually compact soil?

The Compaction Arsenal

Call (435) 628-6663 for current compaction equipment rental rates.

The Usage Reality

Compaction happens at specific project phases:

• Before pouring concrete
• Before laying pavers
• After backfilling trenches
• During site prep

That's maybe 5-10 days per project, a few projects per year. At 20-30 days annually, rental is a fraction of ownership cost.

When Compaction Rental Makes Sense

• Paver installation — Rent for the prep and final compaction phases
• Concrete prep — Rent for the day(s) of base preparation
• Utility work — Rent a jumping jack for trench backfill
• Site development — Rent larger rollers for major grading

5. Large Generators — Power You Rarely Need

Break-even: 80+ days of usage per year

Small portable generators might make sense to own. Large generators almost never do.

The Generator Dilemma

When You Actually Need Big Power

• Remote job sites (temporary)
• Events and outdoor functions (very temporary)
• Emergency backup (hopefully never)
• Construction phases before permanent power (temporary)

Notice a pattern? Generator need is almost always temporary. Buying a large generator for occasional use ties up significant capital.

Call (435) 628-6663 for current generator rental rates.

When Generator Rental Makes Sense

• Remote construction — Rent for the phase before power is installed
• Events — Rent for the specific event duration
• Emergency prep — Rent when storms threaten, return after
• Heavy equipment support — Rent when running multiple welders/compressors

6. Specialty Tools — The Long Tail of Rarely-Used Equipment

Break-even: Varies, but usually never

Specialty tools are the ultimate rental category because you need them for specific tasks, then never again.

The Specialty Tool Graveyard

Every contractor and serious DIYer has a collection of expensive tools used once:

Call (435) 628-6663 for current specialty tool rental rates.

The Specialty Tool Principle

Ask yourself: "When was the last time I needed this, and when will I need it again?"

If the answer involves years, not months — rent it.

When Specialty Tool Rental Makes Sense

• Always. Unless you use a specialty tool monthly, renting costs less.

7. Trailers — The Surprise Rental Category

Break-even: 100+ days of usage per year

People assume trailers should be bought. The math often disagrees.

Trailer Ownership Reality

Ownership costs include depreciation, registration/tags, maintenance (tires, bearings, lights), insurance, and storage space. These annual costs add up quickly.

You need regular trailer usage just to break even on ownership costs — not counting the purchase price.

Call (435) 628-6663 for current trailer rental rates.

The Trailer Flexibility Advantage

Different projects need different trailers:

• Moving equipment: Equipment trailer with ramps
• Hauling debris: Dump trailer
• Material runs: Utility trailer
• Heavy loads: High-capacity trailer

Owning means compromising on one type. Renting means always having exactly what the job needs.

When Trailer Rental Makes Sense

• Occasional hauling — A few times per month or less
• Variable needs — Sometimes dump, sometimes flatbed, sometimes equipment
• Heavy equipment transport — Rent the capacity you need for specific machines
• Storage-limited — No place to keep a trailer

The Decision Framework: Rent or Buy?

Use this simple framework for any equipment decision:

Step 1: Calculate Annual Usage Days

Honestly estimate how many days per year you'll use the equipment. Be realistic, not optimistic.

Step 2: Calculate Ownership Costs

• Purchase price × 25% = approximate annual ownership cost (depreciation + maintenance + insurance)
• Add storage if applicable

Step 3: Calculate Rental Costs

• Daily rate × estimated annual usage days
• Add delivery if applicable

Step 4: Compare

If Rental < Ownership: Rent If Rental > Ownership (and usage is consistent): Consider buying If unsure: Rent for a year, track actual usage, then decide

The 60% Rule

If you won't use equipment at least 60% of available working days (~150 days/year), renting almost always wins mathematically. And very few businesses outside dedicated equipment operators hit that threshold for any single machine.

Frequently Asked Questions

Is it cheaper to rent or buy construction equipment?

For most users, renting is significantly cheaper. Equipment ownership costs 20-30% of purchase price annually in depreciation, maintenance, and insurance. Unless you use equipment 150+ days per year, rental typically costs less.

What equipment is worth buying vs renting?

Consider buying only if you'll use equipment 60%+ of working days annually. Hand tools, small power tools, and equipment you use daily may be worth buying. Heavy equipment, specialty tools, and seasonal-use items are almost always better to rent.

How do I calculate rent vs buy for equipment?

Add up annual ownership costs (depreciation ~20%, maintenance ~7%, insurance ~2%) plus opportunity cost of capital. Compare to rental cost × expected annual usage days. If rental total is lower, rent.

Should contractors rent or own equipment?

Most contractors should rent specialty and heavy equipment while owning daily-use tools. Even large contractors often rent excavators, skid steers, and specialty equipment rather than tying up capital in depreciating assets.

What are the hidden costs of equipment ownership?

Beyond purchase price: depreciation (15-25%/year), maintenance (5-10%/year), insurance (1-3%/year), storage costs, financing interest, and opportunity cost of capital tied up in equipment.

When does buying equipment make sense?

Buying makes sense when you'll use equipment 150+ days per year consistently, when rental availability is limited in your area, or when you need highly specialized equipment that isn't commonly available for rent.

Key Takeaways

• Excavators, skid steers, and heavy equipment almost always make more sense to rent unless you're using them 150-200+ days per year

• True ownership costs 20-30% of purchase price annually when you factor in depreciation, maintenance, insurance, and storage

• Rental preserves cash flow and keeps capital available for growth instead of tied up in depreciating iron

• Specialty tools should virtually always be rented — if you use something once or twice a year, buying is burning money

• Rental gives you the right tool for every job instead of making do with what you happen to own

• The 60% rule: If you won't use it 60% of working days, rent it

Make the Smart Equipment Decision

Still not sure whether to rent or buy? The team at Beehive Rental & Sales has helped Southern Utah contractors and homeowners make smart equipment decisions since 1994. We'll give you honest advice — even if that means telling you to buy instead of rent.

Beehive Rental & Sales 1175 Highland Drive St. George, Utah 84770

Phone: (435) 628-6663 Email: beehiverental@infowest.com Hours: Mon-Fri 7AM-5PM | Sat 8AM-12PM

See Our Equipment & Rental Rates →

Beehive Rental & Sales has been Southern Utah's equipment partner since 1994. We help you get the job done right — whether that means renting, buying used equipment, or getting your current equipment repaired.

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