We own a fleet, so we know exactly what a machine costs to keep. That is why we tell most homeowners and a lot of contractors not to buy one. Here is the honest math.
What ownership really costs
A new compact excavator in the U35 class or a track loader in the SVL75 class is a purchase well into the tens of thousands of dollars, and financing adds interest on top. Then the costs nobody budgets for: insurance, which is required if it leaves your property; maintenance at manufacturer intervals, plus tracks, which wear out and are expensive to replace; hydraulic hoses, pins and bushings; a trailer rated for the machine and a truck that can tow it; somewhere to store it; and depreciation, which on a compact machine is steepest in the first three years. Add theft risk, since compact equipment is a common target in rural York and Durham.
The break-even
Our U35 rents for $1,500 a week. If a contractor uses an excavator forty weeks a year, ownership wins clearly. If a homeowner or a small landscaper uses one four to eight weeks a year, renting is thousands of dollars cheaper every year once maintenance, insurance, storage and depreciation are counted, and the machine that shows up is always serviced, current and the right size for that specific job. The rough line most contractors use is this: if the machine will be working more than about half the year, buy; if not, rent.
The hidden advantage of renting
You get the right machine every time. Owners buy one machine and use it for everything, which means a U35 owner is digging deck footings on a lawn with a machine that is too heavy, and a U17 owner is spending two days on a stump that a U35 would pull in ten minutes. Renters pick by job. You also never lose a week to a machine in the shop.
When buying does make sense
You are a contractor with steady work that needs the same machine most weeks. You have a farm or large acreage with year-round chores, in which case a compact tractor like the LX2620 class is often the smarter purchase than an excavator, because it does loader work, mowing, snow and light grading. You have secure storage and a truck and trailer already.
The middle path: rent by the month
Monthly rates are the sweet spot for a contractor with a two or three month project. The U35 is $3,500 a month delivered, with no maintenance, no insurance to arrange and no trailer to own, and it goes back when the job ends.
If you are weighing a purchase, call us at 905-251-2521. We will tell you honestly whether renting or buying makes sense for how much you actually use a machine, even if the answer is to buy.