If your business relies on trucks for your day-to-day operations, you’ve got two options to choose from. You can either rent a truck or purchase one. The answer greatly varies on your needs.
On a lot of occasions, buying trucks makes a lot of sense. This is particularly true if you’ve got the budget. However, there are several instances where renting may be the wiser option.
So, should you purchase or rent a truck? If you’re running a business that requires one or more trucks, we’re going to share with you a couple of reasons why you should consider renting one from a trucking company.
Coping with a Breakdown
You may still have to rent a truck even if your business does own one. Keep in mind that the current truck of your company will break down eventually. When it does, it will affect your operations. So, how can you move your goods and services?
You can utilize a rental truck as a temporary replacement. This will help you continue the operations of your business without waiting for your truck to be fixed. You can always wait for your truck to get back on track. However, doing so might result in overtime pay, refunds, and delayed shipments. Oftentimes, renting a truck is more affordable compared to the loss of income when your truck breaks down.
Manage a Limited Cash Flow
If you’ve got a tight cash flow for your business, you should consider renting a truck. The reason for this is that it lowers your financial risk.
You have to take care of any maintenance and repair expenses if you own a truck. Aside from regular maintenance, such as brake replacements, tire rotations, and oil changes, you also have to be ready to replace parts that can cost a lot of money. Be ready to spend more than $10,000 if you have to replace the transmission or engine of your truck.
Since your business is not accountable for maintaining rental trucks, you do not have to worry about any of these potential expenses. If a truck malfunctions, the rental company will fix or replace it. Thus, they will provide you with another truck you can use.
Any business should think about renting trucks. However, it’s extremely useful for businesses with a tight cash flow. You may have a hard time coping with an expensive cost if you do not have a huge positive cash flow. Huge costs can often be devastating to some businesses.
Starting a Business with Low Capital
Renting a truck will help you if you’re simply starting a business and have limited capital.
If you’re going to buy a truck, your business will have a huge amount of its financial resources tied up in the asset. On the other hand, you can save money if you rent a truck. Then, you can use the money you saved for other things, such as securing a better location, hiring more employees, start an advertising campaign, and much more. These things can help grow your business.