Is it cheaper to hire or buy an excavator in NSW?

## Hire vs Buy: Which Is Cheaper for an Excavator in NSW? The hire vs buy decision for an excavator comes down to one question: how many days per year will you use the machine? For most residential users, owner builders, landscapers, and small contractors in NSW, hiring is significantly cheaper than buying. ### The True Cost of Buying an Excavator The purchase price of a mini excavator is just the beginning. The true cost of ownership includes: **Purchase price:** - Used 1.7T mini excavator (3–5 years old): $25,000–$45,000 - New 1.7T mini excavator: $55,000–$75,000 - Used 3.5T excavator: $45,000–$80,000 - New 3.5T excavator: $90,000–$130,000 **Ongoing costs (annual):** - Insurance (machinery/plant): $1,500–$3,000/year - Registration/licensing: $500–$1,000/year - Servicing and maintenance: $2,000–$5,000/year (more for older machines) - Trailer for transport: $8,000–$20,000 (plus registration and insurance) - Storage: $50–$200/month if you don't have space on your property - Depreciation: 10–15% per year on purchase price **Total annual ownership cost (1.7T, used):** $8,000–$15,000/year, plus depreciation. ### The Break-Even Point At BuildHire's daily rate of $205/day for a 1.7T mini excavator: - 30 days of hire = $8,400 - 50 days of hire = $14,000 - 100 days of hire = $28,000 When you factor in the full cost of ownership (not just purchase price), the break-even point is approximately **150–200 days of use per year**. If you use an excavator fewer than 150 days per year, hiring is cheaper. For context: a busy residential landscaper might use an excavator 80–100 days per year. A small civil contractor might use one 120–150 days per year. Very few small operators exceed 150 days per year. ### When Buying Makes Sense Buying an excavator makes financial sense if: - You use an excavator 150+ days per year - You have a secure storage location and transport capability - You have the cash flow to absorb purchase and maintenance costs - You want to offer wet hire services (BuildHire is dry hire only) ### The Hidden Advantage of Hiring: Flexibility Hiring from BuildHire gives you access to the right machine for each job — not just the machine you own. A landscaper might need a 0.8T for a tight backyard job on Monday and a 3.5T for a large retaining wall on Wednesday. Hiring gives you that flexibility; owning ties you to one machine. ### Recommendation For owner builders, landscapers, and contractors using an excavator fewer than 150 days per year, hiring from BuildHire is the financially superior choice. For high-frequency users (150+ days/year), buying may be worth considering — but factor in all ownership costs, not just the purchase price. Call BuildHire on 1300 157 882 to discuss your usage pattern and find the most cost-effective solution.