Should I Rent or Buy My First Directional Drill?
- Nate Jones
- Jul 13
- 2 min read
If you're launching a fiber optic directional drilling business, one of the biggest decisions you'll face early on is whether to rent or buy your first directional drill. This choice can significantly impact your startup costs, cash flow, and long-term profitability.
Let’s explore the pros and cons of each option—and how to make the right decision for your business.
Renting vs. Buying: What’s the Difference?
Renting a Directional Drill
Pros:
Lower upfront cost – Ideal for startups with limited capital.
Flexibility – Great for short-term projects or testing the market.
Maintenance included – Many rental agreements include service and repairs.
Try before you buy – Some rental agreements offer a rental purchase option (RPO), allowing you to apply rental payments toward a future purchase
Cons:
Higher long-term cost – Renting is more expensive over time.
Limited availability – During peak seasons, equipment may be hard to find.
No asset ownership – You don’t build equity in the equipment.
Buying a Directional Drill
Pros:
Long-term savings – Lower cost over time if used regularly.
Asset ownership – Builds equity and can be resold or traded in.
Customization – You can outfit your drill with the tools and features you need.
Cons:
High upfront cost – New drills can cost $80,000–$200,000+.
Maintenance responsibility – You’re on the hook for repairs and upkeep.
Depreciation – Equipment loses value over time.
Which Option Is Right for You?
According to Vermeer’s HDD experts, the decision depends on your job volume, cash flow, and long-term goals. If you're just starting out and want to keep overhead low, renting may be the smarter move. But if you’ve secured long-term contracts or plan to drill regularly, buying could save you money in the long run.
💡 Pro Tip: Many new business owners start by renting and transition to ownership once they’ve built a steady client base.
Don’t Forget Insurance
Whether you rent or buy, you’ll need specialized insurance to protect your equipment, crew, and business. At Excavating Insurance Partners, we offer tailored fiber optic drilling insurance that covers:
👉 Get a quote today and protect your investment—whether it’s rented or owned.
External Resources to Help You Decide
Final Thoughts
There’s no one-size-fits-all answer to the rent vs. buy question. It depends on your business model, financial situation, and growth plans. But no matter which route you choose, make sure you’re protected with the right insurance from a partner who understands your industry.
At Excavating Insurance Partners, we specialize in helping fiber optic directional drilling businesses get the coverage they need to succeed.
Comments