A few years ago, the answer to whether buying or hiring mining equipment in Australia might well have been to buy, because the mining industry was booming and capital was flowing. Now however, the decision is not so clear cut and many companies find that hiring is a better option for them than buying.
Let’s take a look at the reasons why some companies might find buying their mining equipment in Australia a better option, whilst others might find that hiring better suits their needs.
Reasons why buying mining equipment in Australia is the best option
Spending your capital on buying mining equipment is a good idea when there is plenty of work around. This is because you always have the right equipment ready to be deployed and don’t have to try and locate hire equipment, when you have multiple projects on the go at the same time. It is also of benefit to have your own trucks so that you can respond to new business opportunities as they become available, rather than having to wait on the delivery of hire trucks. In addition, mining equipment and heavy duty trucks are considered assets, so you when you purchase them they are helping to increase the positive side of your balance sheet.
Reasons why hiring mining equipment in Australia is the best option
When times are tough, it can be more beneficial to keep your capital in the bank, ready to take advantage of new business opportunities as they arise. When you hire your equipment, you don’t have to spend money on updating your fleet of trucks, on maintenance, registrations and insurances. So you can actually save a lot of money when you hire instead of buy your mining equipment. The problem with hiring is that you are at the mercy of the hire company, so you need to find a reliable company with a good reputation and one that has a large fleet of trucks on their books.
Another option that some companies prefer is to buy a core fleet of trucks and then hire other trucks, if and when the need arises. If you are in the market for new mining equipment in Australia, why not call Ausroad on 07 3216 7058 and discuss your options with us?