The ERA’s online Total Cost of Ownership (TCO) calculator, which provides a comparison between the costs of buying and renting equipment, has been upgraded with the addition of operating and financial leases, the two main leasing options.
In addition to leasing, the calculator now offers a new interface that allows users to modify and visualise parameters to compare all business models at once.
Michel Petitjean, Secretary General of the ERA, said, “We are delighted to release an upgraded version of our equipment calculator after conducting an extensive research on the lease versus buy versus rent options.
“This new version has a completely new user-friendly interface which allows for fast comparison of these options by taking into account a broad range of relevant parameters and considerations. This calculator incorporates also financial and operating lease and is available through web and mobile app.”
Since 2015, the ERA equipment TCO calculator (https://equipmentcalculator.org) has provided a financial tool designed to help equipment stakeholders better assess the actual cost of equipment by working out the total economic value of the investment.
The calculator can be used online at the above website and is also available as a free App for download from the Apple store and the Google Play store for Android devices.
It provides a level of cost analysis not previously available publically, on a simplified and user-friendly interface. The calculator offers an unbiased view of buy versus rental analysis, to help equipment owners and buyers draw comparisons and make informed decisions.
The online calculator today has well over 1,000 regular users, which are split almost evenly among contractors/end users, rental companies and equipment manufacturers. Users can save all their calculations inside the tool for future reference.
In 2017, the ERA made the decision to complete the scope of the TCO analysis by including the lease options, both financial and operating, and by introducing the risk factors associated with the operation and management of construction equipment. This so-called Lease-Buy-Rent (LRB) project has been developed with the assistance of a financial expert in leasing and with the input from equipment stakeholders. The new version of the calculator is built on results from the LBR project.
More information about the upgraded TCO calculator can be found in the March issue of IRN.