Should You Rent or Buy Heavy Equipment in 2026?

If you're a contractor or small business owner, choosing whether to rent or buy heavy equipment in 2026 is a major decision.

With equipment prices stabilizing after years of inflation and rental fleets growing, the right choice depends on how often you use the equipment, your cash flow, and your long-term goals. Owning equipment like skid steers or excavators gives you control and potential savings over time, but also adds costs like maintenance, storage, insurance, and depreciation.

In this blog we will cover everything you need to know to make the right decision for your contracting business.
 

Understanding True Equipment Costs

Buying heavy equipment means paying not only the purchase price but also ongoing expenses.

These include maintenance, repairs, storage space, liability and property insurance, transportation to job sites, and depreciation.

You’ll also need to finance the equipment or pay cash, which can tie up your capital.

On the other hand, renting heavy equipment eliminates those concerns and offers access to newer, well-maintained machinery when you need it.

Rentals also come with simpler budgeting and full tax deductibility. Check out our blog The True Cost of Heavy Equipment Ownership for a full breakdown of expenses to expect.
 

What the Heavy Equipment Market Looks Like in 2026

Equipment costs have mostly leveled off in 2026. While new machinery remains expensive, used values have softened slightly, making buying a little more accessible. At the same time, rental availability is high due to increased investment in fleet expansions. This means contractors can often get what they need when they need it, and usually at competitive rates. If you're considering a purchase, equipment dealers may be offering financing deals to move inventory, but high interest rates remain a concern for buyers. Renting offers a more flexible option during a market where uncertainty remains.
 

The 65% Utilization Rule

The 65% rule suggests if you use a machine less than 65% of the time, renting is typically more cost-effective.

Machines that only get used occasionally, like boom lifts or floor sanders, are often better rented. On the other hand, if you use a skid steer or mini excavator every week, it could make sense to own. Use your past projects and upcoming workload to estimate how much real usage you’ll get from a specific machine.
 

Renting, Leasing, or Buying

You’re not limited to just renting or buying. Leasing offers a middle ground, providing access to equipment for a longer term with less upfront cost than buying.

It’s ideal if you need a machine for a few years but don’t want the burden of ownership. Short-term rentals are perfect for one-off jobs or when equipment use is infrequent. Owning makes sense when your equipment is in use constantly, you have the capital, and you’re prepared for long-term maintenance.
 

How to Know When to Buy

If your projects consistently demand the same type of equipment, buying might be the right move. When machines are in regular use, ownership can reduce per-use costs and improve efficiency. Equipment that’s customized to your needs or used daily justifies the investment. And if your accountant says it makes sense for taxes, such as end-of-year depreciation deductions, buying may pay off.

Still not sure? Use the guidance in Should I Buy or Rent Equipment? (Free Cost Calculator) to crunch the numbers.
 

Let’s Talk About What Works for You

Whether you’re managing a busy schedule of jobs or growing your business, making the right call on equipment will impact your bottom line. Renting offers flexibility and lower risk. Buying offers control and long-term value if the workload is there.

If you’re in North Carolina or South Carolina and have questions about rental options, equipment costs, or what makes the most sense for your business, contact us at A-Z Rentals . We’re here to help you choose the smartest path forward.