Barge Options: Rent or Purchase?

Tips & Advice

Deciding whether to rent or purchase a barge for your offshore project can be a challenge. There are both advantages and disadvantages to both renting and purchasing. Ultimately, the scope of your project and future projects as well as factors affecting cash flow can help you decide which option is a better fit for your needs. Below are some of the pros and cons of both renting and purchasing barges to help you figure out which of these options is more ideal for you:

Pros of Renting

  • Since you don’t own the barge, you don’t have to worry about depreciation.

  • Renting gives you the opportunity to try out the latest and newest barges with the latest and newest features.

  • You can easily swap out a barge with another one that better suits your project, as needed.

  • Maintenance expenses are minimized because the owner of the barge is required to handle routine maintenance.

  • Leasing gives you the chance to try different types of barges out before you buy them, if you do decide to invest in a barge in the future.

  • You can customize equipment and extras as needed, renting these out as well.

  • Insurance costs are usually lower on your end, and the type of insurance required of you is typically based on the scope of the project and the jobs being done using the barge.

  • The need for a long-term capital investment is eliminated.

Cons of Renting

  • For popular types of barges, there may be a waiting period, particularly during busy seasons in offshore construction.

  • If you know you’re going to use a barge for several different projects for years to come, it may cost you less in the long run to purchase the barge outright.

Pros of Purchasing

  • As we’ve mentioned, this can save you money over the long haul if you know you’ll be using the barge for years to come on multiple different projects.

  • You can claim a business tax deduction for the cost of the barge.

  • As the value of the barge depreciates, how much it depreciates may be tax-deductible.

  • Barges are built to last for decades. If you buy a new or fairly new barge, you can expect to have it for quite a long while.

  • Buying used can save you a great deal of money, especially in comparison to renting a new barge or fairly new barge.

  • You don’t have to deal with any waiting periods when you need to use the barge ASAP.

  • Once you’re done with the barge, you can sell it or rent it out yourself.

Cons of Purchasing

  • You’ll probably pay more insurance to actually insure the barge, rather than simply paying the price to insure the project. If you rent, the owner of the barge has to cover some of these insurance costs, typically.

  • You have to pay for routine maintenance and repair costs.

  • You won’t be as easily able to trade in the barge for a new one or different one as needed.

  • For a short-term project, renting probably makes more sense.

  • You’re responsible for transportation costs in terms of getting the barge from one project to the next.

  • When the barge isn’t in use, you have to pay for storage costs or mooring costs.

Although our list of cons of renting is a bit shorter than the list for purchasing, this by no means indicates that renting is always the better option. In fact, the benefits of purchasing, including the ones listed above, can definitely be compelling enough to sway a sizeable number of companies to purchase rather than rent. At the end of the day, your unique project needs and budget have to determine which option is the better choice.

BUY AND SELL WITH EIFFEL TRADING

Eiffel Trading’s online marketplace has a wide variety of used barges and used work boats for sale and rent. In addition, our construction equipment ranges from used cranes, to used dozers, and everything in between.

All of our listings are constantly being updated, but if you don’t see what you’re looking for, create a wanted listing for free.

Ready to sell your used heavy equipment or construction material? List your products today for free on Eiffel Trading’s online marketplace.

If you have any questions or would like additional information, please call us at 1-800-541-7998 or email sales@eiffeltrading.com.