So your business needs a fleet of vehicles, and you’re considering the rental or purchase option? When you’re running a business you’ll want an option with flexibility that can enhance the productivity of your operation. With this in mind, let’s consider the choices.
Pros of renting
If you decide to buy the trucks in your fleet, you’ll be responsible for all the maintenance issues, and this can end up coming with high prices (plus time and hassle)! When you rent a truck, this won’t be the case and so won’t have the expenses or downtime. We all know that downtime equals loss of revenue (and that’s the last thing you want)! Any time wasted getting trucks fixed would end up eating into your profits. To avoid these kinds of problems, renting is the best way to go.
When you buy a fleet of vehicles, you’ll also end up incurring the licensing and insurance that’s required. Again, this can be expensive. If you add up the price of buying the trucks, dealing with vehicle maintenance issues plus the licensing and insurance costs, it works out cheaper to rent in the long run. When you are thinking about repairs, bear in mind that the repairs on larger trucks are of course far more complex and expensive than cars. You should also consider that frequent use contributes to wear and tear.
Renting is a more flexible option; you pay for the services that you need for a set amount of time. If your needs change, you can pretty simply change your options. With a purchased fleet, if you want to scale down (or scale up), there’s more time and commitment involved. Renting can allow you to access a high powered vehicle with no strings attached! For those considering this route, check out 3/4 ton commercial truck through Flex Fleet.
Pros of buying
As with any valuable purchase, the ownership can be thought of as an investment. When you rent, you’ll of course never see the money back. When you buy; you’ve invested and have the option to sell to see a return at a later date. Some businesses prefer the control of ownership and like their company assets and equipment to belong to them only. If you aren’t concerned with paying out for maintenance issues and repairs, buying may not be so daunting for you. What’s more, if you already have a place to store your vehicles; buying a fleet may be viable.
When you rent, you don’t need to find any storage space, which is a relief as this is just another added expense. If you are considering buying from an investment point of view, you’ll want to consider depreciation. It can be a good idea to figure out how much depreciation your trucks will experience (and how quickly). Doing so can help you to determine how much of a loss you’ll suffer if you purchase.
For most businesses, leasing is the more financially practical and flexible option. You’ll want to save your business money as much as possible in order to increase revenue overall.