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.
“Quick Answer: You should almost always rent excavators, skid steers, concrete equipment, compactors, large generators, specialty tools, and trailers instead of buying. Equipment ownership costs 20-30% of purchase price annually in depreciation, maintenance, and insurance. BeeHive Rental & Sales in St. George offers all seven categories at daily, weekly, and monthly rates — call (435) 628-6663.
Key Takeaways
- •Ownership costs 20-30% of purchase price per year in depreciation, maintenance, insurance, and storage — before you use the equipment once
- •The 60% rule — If you won't use equipment at least 60% of working days (~150 days/year), renting almost always wins mathematically
- •Excavators have the highest break-even threshold at 200+ days/year, making them the #1 equipment category to rent rather than buy
- •Rental preserves cash flow — Keep capital available for business growth instead of tied up in depreciating assets
- •Compare rental rates at BeeHive Rental & Sales for all seven equipment categories
TL;DR: Rent These, Don't Buy
| Equipment | Break-Even Point |
|---|---|
| 1. Excavators | 200+ days/year usage |
| 2. Skid Steers | 150+ days/year usage |
| 3. Concrete Equipment | 60+ days/year usage |
| 4. Compaction Equipment | 50+ days/year usage |
| 5. Generators (Large) | 80+ days/year usage |
| 6. Specialty Tools | Project-dependent |
| 7. Trailers | 100+ days/year usage |
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
| Cost Category | Annual Impact |
|---|---|
| Depreciation | 15-25% of value per year |
| Maintenance | 5-10% of purchase price annually |
| Insurance | 1-3% of value annually |
| Storage | Monthly cost if not on your property |
| Financing | Interest if not paying cash |
| Opportunity cost | Capital tied up, not invested elsewhere |
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.
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. Factor in the capital investment and opportunity cost, and you need substantial annual usage just to break even.
Call (435) 628-6663 for current skid steer rental rates.
The Attachment Trap
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.
Rental solution: Rent the skid steer AND the specific attachment you need. Different project, different attachment, no problem.
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. 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.
4. Compaction Equipment — Critical but Rarely Used
Break-even: 50+ days of usage per year
Compaction equipment is essential for proper base preparation — but how often do you actually compact soil?
| Equipment | Use Case |
|---|---|
| Plate compactor | Pavers, base prep |
| Jumping jack | Trenches, tight areas |
| Walk-behind roller | Large flat areas |
| Ride-on roller | Major site work |
Call (435) 628-6663 for current compaction equipment rental rates.
Compaction happens at specific project phases — maybe 5-10 days per project, a few projects per year. At 20-30 days annually, rental is a fraction of ownership cost.
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.
| Generator Size | Typical Use |
|---|---|
| Portable (3-7kW) | Small tools, backup |
| Mid-size (10-20kW) | Job site, events |
| Towable (25-100kW) | Large sites, heavy power |
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.
6. Specialty Tools — The Long Tail of Rarely-Used Equipment
Break-even: Varies, but usually never
| Tool | Reality |
|---|---|
| Core drill | Need it twice ever |
| Concrete saw | A few cuts per year |
| Stump grinder | When you have stumps |
| Floor sander | One floor refinish |
| Demolition hammer | Demo projects |
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.
Call (435) 628-6663 for current specialty tool rental rates.
7. Trailers — The Surprise Rental Category
Break-even: 100+ days of usage per year
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.
Call (435) 628-6663 for current trailer rental rates.
The Decision Framework: Rent or Buy?
Step 1: Calculate Annual Usage Days
Honestly estimate how many days per year you'll use the equipment.
Step 2: Calculate Ownership Costs
- •Purchase price × 25% = approximate annual ownership cost
Step 3: Calculate Rental Costs
- •Daily rate × estimated annual usage days
Step 4: Compare
- •If Rental < Ownership: Rent
- •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.
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. 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 and equipment you use daily may be worth buying. Heavy equipment and specialty tools are almost always better to 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 and specialty equipment rather than tying up capital in depreciating assets.
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
- •Specialty tools should virtually always be rented — if you use something once or twice a year, buying is burning money
- •The 60% rule: If you won't use it 60% of working days, rent it
Make the Smart Equipment Decision
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
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