10 Benefits of the Rental Option for End Users
Carrier Rental Systems director Marc White outlines the situations where it can be better to rent rather than buy.
Effective temperature control is as vital for buildings as it is for many industrial processes. In both cases, buying chillers, boilers, air movement and pumping equipment is often the default solution. However, there are a number of solutions where it makes sense to rent rather than purchase.
The top reason for renting HVAC plant is probably a short-term sports event or a temporary exhibition. But here are nine more benefits of renting rather than purchasing HVAC plant, that show the array of situations where it can help and the advantages:
1. Equipment breakdown:
A building can quickly become uninhabitable if HVAC plant stops working. In the case of a process application, a halted production line has an immediate and accumulating cost to a business and can threaten the fulfillment of orders and, potentially, future goodwill.
In this situation, renting temporary cooling or heating provides the end user with an immediate solution. Rental equipment can be up and running in a couple of hours, enabling business continuity while the installed equipment is repaired or options are reviewed for longer term replacement.
2. Periodic or seasonal surges:
Adding capacity with hire plant enables producers to capitalise on demand without investing cash on new equipment that may not be needed next month.
Many buildings today have plant operating at or near capacity. Hiring additional equipment in peak summer or winter months can provide the vital headroom needed to maintain comfortable conditions rather than investing in an expensive plant upgrade that may not be needed for, say, 10 months a year.
3. 24/7 support:
In the unlikely event of a problem, Carrier Rental Systems’ engineers are on standby and can provide on-site support to rectify the situation and restore cooling or heating.
Carrier Rental Systems guarantees a trained engineer will return a breakdown call within an hour. A phone conversation normally resolves the issue. If not, an engineer will be on site rapidly. This gives end users complete peace of mind.
4. Fixed costs:
For some companies, the cost-certainty offered by rental is so attractive they choose it as their preferred method of financing major items involving temperature control plant. The assurance of fixed payments and a 24-hour call-out in the event of breakdown can be compelling.
There are no surprise bills for service or maintenance that, in the case of purchased capital plant, can amount to substantial unplanned costs for a business. Our service and maintenance support is provided as part of the hire contract and enables a company to budget with confidence and maintain cash flow.
5. Refridgerant compliance without long-term committment:
A company with older plant needing replacement may be nervous about committing to a certain refrigerant type, given recent changes in regulations. F-gas refrigerants, such as HFCs, in particular have been affected.
Using a rental chiller, building owners and industrial end users can take the necessary time to plan and budget for replacing obsolete plant knowing that, in the interim, their continuity of service is ensured.
6. Tax relief:
Finance directors and accountants may be familiar with the tax impact of hiring plant and equipment versus buying it, but those making the actual decision may not be. Business-related rental expenditures are typically deductible for corporation tax purposes as incurred, while capital purchases are usually capitalised and depreciated over a number of years. We suggest you consult your tax or finance professional for further guidance or analysis.
7. Transitional solution:
The process of getting approved for capital expenditure, particularly in large companies, can be daunting and timeconsuming. Renting provides a quick and effective short to medium term solution while proposals are considered and tenders organised.
8. New premises:
Renting can be a sensible option when a company moves into new premises or has a short lease period. A rental solution can cover this period without the expense of installing a new air conditioning or ventilation system.
9. Specialist advice:
Hire companies such as Carrier Rental Systems can provide insight into the operation of chilling and heating plant as well as required ancillaries such as ducting, pumps, fans and electrical systems.
If a process customer has an existing chiller on hire from us and wants to increase capacity, perhaps due to a requirement to increase production, we can supply additional units to meet the need or exchange the unit for a larger capacity model.
Carrier Rental Systems has a vast range of equipment and provides national coverage of the UK and Ireland. Rental options include short, medium and long-term contracts.
Following our recent acquisition of Watkins Hire, we also have access to a full range of industrial steam plants, making our offering among the most comprehensive available.
Our team of regional managers is available to discuss high-efficiency temperature control rental solutions for all applications.Download the Article