A lot of factors come into play when helping carriers determine whether they should rent or buy their equipment, but most important are the challenges in recruiting and retaining drivers, seasonality of the work and of course the financial considerations.
OWNERSHIP
For most carriers, ownership of their equipment is the preferred method of running their business. Most carriers prefer to own their equipment. For smaller carriers and owner-operators buying equipment is the usual route. Also carriers with their own shops, usually choose to purchase their equipment so they can maintain it themselves. Cash is king when buying equipment but most carriers have to finance their equipment purchases. Besides the cost of interest rates and monthly payments, ownership costs include managing ongoing maintenance costs, warranty administration, higher fuel cost and costs incurred due to downtime.
For most carriers, ownership of their equipment is the preferred method of running their business. Most carriers prefer to own their equipment. For smaller carriers and owner-operators buying equipment is the usual route. Also carriers with their own shops, usually choose to purchase their equipment so they can maintain it themselves. Cash is king when buying equipment but most carriers have to finance their equipment purchases. Besides the cost of interest rates and monthly payments, ownership costs include managing ongoing maintenance costs, warranty administration, higher fuel cost and costs incurred due to downtime.
RENTING
Significantly less percentage of carriers decide to rent their equipment. Most of the times renting turns to be a cost-effective solution to fleet management, but the decision to rent equipment really incorporates the following factors:
Significantly less percentage of carriers decide to rent their equipment. Most of the times renting turns to be a cost-effective solution to fleet management, but the decision to rent equipment really incorporates the following factors:
1. Renting new equipment helps carriers improve and maintain good safety score.
Carriers enjoy the benefits of having a new and well-maintained fleet.
Carriers enjoy the benefits of having a new and well-maintained fleet.
2. Renting equipment helps carriers increase their cash flow.
Cash flow is one of the most important factors when operating a trucking business. When owning equipment the money is stuck in equipment that loses value every year. Renting allows carries to obtain more equipment without having to put large upfront down payments. That allows carriers to invest their increased cash on more profitable opportunities.
Cash flow is one of the most important factors when operating a trucking business. When owning equipment the money is stuck in equipment that loses value every year. Renting allows carries to obtain more equipment without having to put large upfront down payments. That allows carriers to invest their increased cash on more profitable opportunities.
3. By renting equipment carriers save money on maintenance.
Rental monthly payments includes maintenance costs. The older the equipment it is, the higher the maintenance costs will be.
Rental monthly payments includes maintenance costs. The older the equipment it is, the higher the maintenance costs will be.
4. By renting equipment carriers can meet seasonal demands.
Any business and especially the trucking business has its ups and downs. Renting equipment is good to meet your temporary transportation needs and seasonal demands and allows you to simply return your rental truck when business slows down.
Any business and especially the trucking business has its ups and downs. Renting equipment is good to meet your temporary transportation needs and seasonal demands and allows you to simply return your rental truck when business slows down.
5. By renting equipment carriers can save money on fuel.
You can enjoy an estimated 20-30% more in fuel savings by running a fleet of brand new trucks than maintain an older equipment.
Week to Week Rentals
(Rent for a day, a week or for as long as you need it)
Get a Quote Today!
NEED A TRUCK?
Get a Quote
You can enjoy an estimated 20-30% more in fuel savings by running a fleet of brand new trucks than maintain an older equipment.
Week to Week Rentals
(Rent for a day, a week or for as long as you need it)
Get a Quote Today!
NEED A TRUCK?
Get a Quote
Phone: (224) 766-0396
Fax: (630) 348-1340
Fax: (630) 348-1340
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