In today’s volatile economy, you have to be more astute than ever before. The goal posts have shifted. In the transportation world that means you must balance the cost of your up-front investments, your long-term business plans and the constantly changing demands of your clients. There is no margin for error on the road to success so when it comes to transport trailers the decision to rent or lease is crucial. That’s where we come in. We’ve created a list of your top seven considerations under each category to help you make the best decision possible for your future business success:
You will benefit from renting because:
- It’s ideal for short-term, immediate business needs – a few months.
- Renting a trailer is only for as long as you actually need it = you can rent for a specific contract and manage your costs accordingly. This makes your bidding process more accurate.
- There is less overall risk associated with renting. Your costs are fixed and repairs are not your problem.
- It provides flexibility to meet immediate or fluctuating demands.
- Your business is growing/expanding but it’s hard to predict how quickly or you have limited access to up-front cash flow.
- You’ve got a large job that demands additional trailers but only for a short amount of time.
- Existing trailers have been decommissioned or are in for repairs/maintenance.
Leasing might be ideal if:
- You are looking for specific tax advantages – if it’s a monthly expense you can write it off.
- You have a foreseeable and predictable cash flow.
- You are looking to incur less upfront costs.
- Your company is growing, because it means you can keep your cash for use in other areas.
- You can turn in trailers when the latest technology becomes available ensuring you have every advantage in a constantly changing marketplace.
- You want to keep your options open and be able to purchase your leased transport trailer.
- You are looking for flexible credit standards that are typically much lower than when renting.
As you can see there is merit to both options. In the transportation business the triangle of success relies primarily on your ability to manage all three points; flexible business demands, the economy and customer expectations. Effectively wrestling with the decision to rent or lease – or perhaps choosing both options as business demands dictate, ensures you stay on point and successful! When you’ve considered these seven points, make the call to us today – literally and figuratively!