When you are running a business, there is a certain pride that comes with seeing a shiny new forklift or telehandler parked in your warehouse with your logo on the side. It feels like a milestone. You have made the leap from renting to owning. But, the sticker price is really just the tip of the iceberg.
Owning heavy machinery is a high-maintenance investment. From the moment that machine rolls off the delivery truck, the clock starts ticking on a range of expenses that can catch even the most diligent budgeter off guard.
For example, Biondo Rentals transport services deliver hired forklifts directly to your warehouse. Owning the gear means you also have to own the means to move it—or pay a premium for heavy haulage.
Depreciation
The second you drive a new piece of plant equipment onto your site, its market value takes a bit of a dive. In the Australian market, heavy machinery typically depreciates at a rate of about 15% to 20% every year. While your accountant might find some silver lining with tax write-offs, the reality is that your capital is tied up in a declining asset.
If you decide to sell that forklift in five years, you might find that the resale value is a far cry from what you originally shelled out. When you rent, that loss in value is someone else’s worry, leaving your capital free to grow other parts of your business.
Maintenance and the “Surprise” Factor
We all know that regular servicing is part of the deal. You have got your oils, your filters, and those essential hydraulic fluid changes. But in a busy Australian work environment, machines get a proper workout. Dust, heat, and heavy lifting take their toll. It is rarely the scheduled service that breaks the bank; it is the unexpected hydraulic leak or a faulty battery right before a deadline.
When you own the machine, you are the one calling the mobile mechanic and watching the hourly rates climb while your productivity grinds to a halt. In 2026, specialised parts for advanced models are not exactly getting any cheaper. A major engine or transmission repair can easily run into five figures.
Safety Compliance
In Victoria, we have some of the most robust safety standards in the world, and for good reason. Keeping your crew safe is priority number one. However, staying compliant with Australian Standards and WorkSafe Victoria requirements involves more than just a quick walk-around. You are looking at mandatory annual safety inspections, thorough record keeping, and ensuring every logbook is up to date.
Then there is the matter of insurance. Plant and equipment insurance premiums have seen a steady rise, and as we head through 2026, those costs are not showing many signs of slowing down. Between public liability and specific machinery breakdown cover, the annual bill can be quite a shock. It is a necessary expense, of course, but it is another layer of “hidden” cost that makes the rental model look a lot more attractive.
The Logistics of Sitting Still
One of the most overlooked costs of ownership is what happens when the machine is not working. Unless your business has a constant, 24/7 need for a specific piece of equipment, there will be downtime. Whether it is a seasonal lull or a gap between projects, a machine sitting idle is still costing you money. You are paying for the space it occupies in your warehouse or yard, and you are still paying for its insurance and registration.
Why Modern Businesses are Shifting Gears
Choosing to rent rather than own is not about avoiding responsibility; it is about being smart with your resources. You get access to the latest, most fuel-efficient models without the massive upfront hit to your bank account. The maintenance is handled, the compliance is guaranteed, and if a machine does have a rare hiccup, a replacement is usually on its way before you have even finished your morning coffee.
It is a forward-looking way to manage a fleet. You get to scale up during your busy periods and scale back when things quieten down, ensuring you are only ever paying for what you actually use. In a fast-paced industry, that kind of flexibility is priceless.