When is Truck Leasing a Wise Move for Your Business?

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Businesses that rely on their trucks for logistics and operations have two options: rent or purchase the trucks. In some cases, buying a truck seems like the wisest business move since the truck belongs to the company already. There’s no need to pay additional fees or entrust your services and products to a third-party company.
But this does not apply to all businesses, especially those with limited cash flow or are just starting in the industry.
If you run a business that needs a truck (or more), here are reasons you’re better off hiring a truck leasing company.
When is Renting a Commercial Truck Better?
Working with limited finances.
If your business is working with a tight cash flow, choose truck leasing to reduce the financial risk assumed by your business.
When you buy a truck, you must also cover any repair costs. Apart from the routine maintenance, such as tire rotations, oil changes and brake replacements, you must also have the budget for component replacements. If the transmission fails or your engine goes, you may have to spend thousands of dollars for repair.
Since your business isn’t responsible for maintaining rented trucks, you need not worry about paying for additional costs. If a truck breaks down, the rental company will replace or repair it. Rest assured, you’ll have a truck to use.;
Any business can benefit from renting but leasing is especially beneficial for businesses working with limited cash flows. Without a regular cash flow, coping with a multi-thousand dollar expense can be difficult and may devastate your business.
Starting a business with limited capital.
If you are just starting a business and have limited funds, leasing a truck puts your capital towards other things that will grow your business. If you buy a truck, you’ll tie your finances to an asset. If you rent, you’ll still pay for the truck but not nearly as much.
Coping with a breakdown.
If your business owns a truck, you may still need to rent one in case yours breaks down. When it does, operations may be postponed or ceased indefinitely. Instead of waiting for your truck to be fixed, rent another one to move your goods.
Use a leased truck as a temporary replacement to keep your operations moving. Waiting is still an option but may lead to refunds, delayed shipments and overtime pay. Leasing a truck is more affordable compared to incurring additional expenses, as well as maintain your credibility when it comes to customer service.
Avoiding loan interest.
As a bonus financial perk, your business need not pay interest with a leased truck. Since you don’t sign a loan when renting, you need not worry about generating any interest.
Using a truck infrequently.
If your business occasionally uses commercial trucks, rent one instead of buying. Leasing is more affordable compared to owning one, plus you need not worry about maintenance fees, monthly payments, insurance premiums or depreciation. You’ll only pay a small fee.
Deciding on a truck.
Sometimes, business owners know they’ll eventually have to buy a truck but are unsure about the model they should choose. How do you buy a business truck? If you don’t know or are uncertain about the type of commercial truck to purchase, avoid buying one until you know what model to buy. Instead, rent different models and ask your team which trucks they liked the best.
Not worrying about storage.
One of the most expensive costs associated with owning a truck is storage. For instance, if you use your trucks for only six months, you may still pay a year’s worth of storage. If you rent a truck, you don’t have to worry about where to store them or how you can pay for the long-term storage costs.
What You Need to Know Before Hiring a Truck Rental Company
Many businesses offer truck leasing services but before you settle on a company, consider the following:
• Check if the company has all the paperwork. Make sure the truck leasing company has all of their paperwork in order. The truck rental company should have a vehicle license, insurance, Certificate of Fitness, proper license plates and more.
• Call companies. Get in touch with rental agencies so you can have an idea of how they treat their customers. Ask for a free quote and find out what the quote includes. If the company is a good one, they’ll automatically provide all the information you need.
Whether you work for an Amazon shop or just a small business in need of a truck, purchasing one isn’t always your only option. If you need a truck but are on a limited budget, have no storage space or don’t have the time to buy one, leasing is your best option. Get in touch with your local truck leasing company to learn more.

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