Major Benefits for Dealers Who Rent Out Equipment

The equipment rental segment is booming. With most contractors indicating that they plan to grow or maintain their rental use, the American Rental Association predicts the rental industry to reach $60 billion by 2020.

This makes sense; after all, there are some major benefits for consumers, for whom rentals provide the affordability, simplicity and flexibility to accomplish more jobs and grow their business.

This is all great news for equipment dealers who stand to exponentially expand profitability through rentals, in both direct and indirect ways. First and foremost, equipment rentals earn profits for equipment dealerships, and can do so in a more immediate way than outright purchases, according to Rental Equipment Register. Often consumers are not willing – or  are not able – to make high-priced equipment purchases, and would thus postpone buying equipment from a dealership, sometimes indefinitely. However, many customers are willing and able to pay for short-term or long-term rentals, which promptly contribute to a dealership’s cash flow. This influx of money can help a dealership pay down debt or make investments even as they wait to move their more expensive for-sale equipment.

Rentals are often more profitable than sales in the long-term, as well. After renting out a piece of equipment for many years, and then finally selling it used, that product will have often generated as much as two to three times higher profit margins than if the machine had been sold new.

When offering rentals, an equipment dealership is also making an investment in future revenue streams, which have the potential to earn incredibly high returns. According to Rental Equipment Register, a byproduct of a rental business comes when you update your rental fleet with new machines, allowing you to additionally sell “an inventory of well-maintained, low-hour, used machines that have great marketability and high profit potential.” Not only that, but you have now insulated the local market from outside penetration, and seeded opportunities for used equipment buyers to return to you for parts and services.

Investing in an equipment rental business can also pay off by building customer relationships and brand loyalty. As an affordable, low-risk way to easily access machinery, rentals will attract many new consumers to your dealership. Those with uncertain needs or limited resources, or contractors who just want to give equipment a test-run, can then become introduced and committed to a product before returning to you – the dealer who gave them that opportunity – for purchases, parts and service. And there is the real opportunity: as customers continue to return to your dealership to address various needs, you can develop long-term, revenue-boosting relationships. Equipment rentals provide a powerful opportunity for increasing those interactions; building that trust; and forging ongoing, profitable connections.

At the end of the day, equipment rentals are an incredibly helpful resource for your consumers – one that gives them the tools they need without the costs and hassle of purchasing, maintaining and repairing their own machinery. But it’s not just your customers who will appreciate the service. Equipment rentals are also an amazing opportunity for dealers to increase market penetration, revive slow markets, supplement active markets, invest in future business, build consumer connections, and ultimately boost profits.

Article compiled by Equipment Trader, an industry leader that serves sellers of construction, earthmoving, agricultural, lifting, forestry, mining, and industrial equipment and trailers. With more than 800,000 monthly unique visitors to, Equipment Trader’s main purpose is to bring equipment buyers and sellers together. Additionally, Equipment Trader is committed to providing innovative products to ensure that manufacturers and dealers generate connections, drive sales, and maximize profits. For more information about Equipment Trader, visit


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