Rent VS Buy

Discussion in 'Professional Video Production' started by Dean P. Burell, Aug 20, 2003.

  1. Pros for renting.....

    Always get what you need for the shoot (right tool for the right job)
    Renting helps keep track of costs. When you own equipment, many forget to factor usage into costs for shoot.
    Full rental cost is expensible. If you own equipment, you must also report it as an asset in your financial statements potentially increasing your tax liability.
    When you own the equipment, you are still paying for it when it is not in use, when looking at a rent or buy decision you must factor in the
    utilization when looking at the cost per day/hour. i.e. if you purchase and only shoot 100 days out of the year the cost per day would be based on 100 days rather than 365.



    Cons

    Equipment condition - if you do not rent from someone that has a good reputation, you may not get what you expect. However there are some very good companies out there that take good care of their equipment and inspect it thoroughly before and after each rental.
    Equipment availability - if you are unable to plan in advance you may have difficulty obtaining the equipment you want in times of peak demand.


    Based on the type of work you do and your availability needs, you might also consider leasing the equipment. this gives you the business advantages of rental (full expensibility, eliminating large cash outlay, reduced asset tax liability) and having the benefits of ownership (availability, intimate knowledge of equipment and maintenance). Of course utilization could still be a factor, but if your business requires more flexibility in being reactive to take advantage of opportunities, the cost of missed opportunities may be greater than the cost of idle equipment.
     
    Dean P. Burell, Aug 20, 2003
    #1
    1. Advertisements

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments (here). After that, you can post your question and our members will help you out.