To rent or to buy?
That is the question many project managers face in the construction industry. Whether you’re in the construction, engineering, or manufacturing industry, you’re embarking on several different projects that can be for a shorter, extended period of time and others can take quite a while to complete however long the project may be, you have to make a decision on whether or not it’s better for your business to buy a fleet of trucks or to rent them.
A lot of project managers find leasing the better option because of the flexibility but they also have certain preferences when it comes to selecting a fleet of trucks. There are always new projects with new demands and projects with better financial opportunities but even with that, there will always be those nagging thoughts in the back of your mind that make you wonder if you’re making the right decision… You have to understand that owning a car is a lot different than owning a fleet of trucks!
Typically, when project managers are faced with making this decision, it boils down to the money and how which option will benefit them the most financially, especially in the manufacturing industry… Manufacturers are not only figuring out ways to improve the pricing process but they’re also discovering the benefits of renting fleet trucks to cut down on the costs of transporting various materials.
Now, most people will have it in their mind from the start that buying a fleet of trucks is the better option but that’s not always the case. Before you join team “buy,” check out some of the major benefits of renting first.
Benefits of Renting
If you thought paying a regular car note takes a chunk of your money out of your pocket, just imagine what your monthly payments would be when buying a fleet of trucks. The prices can be astronomical! Not only that, but the interest on the trucks can be so high that it can actually cost more than the truck itself!
So that’s just something you definitely want to think about before making such a big decision on buying. If anything, let your business do a trial run of the fleet of vehicles by renting them out first and then seeing how you benefit financially… it’s all about weighing out your options.
When it comes to the construction industry, a fleet of trucks are just regular small pickup trucks… trucks in the construction industry have trucks that can haul extremely large loads, so with these trucks being able to haul large loads, that means that the trucks are pretty massive as well and the price tag on any type of maintenance needs will be just as massive.
If you buy your fleet, you will be responsible for repairs needed on the trucks but if you rent, the fleet company will be involved with the maintaining of the vehicle. Some typical truck maintenance includes:
- Oil changes
- New tire/tire rotation
Everybody knows that repairs on a regular size vehicle are expensive but to have any repairs fixed on a flatbed or one-ton truck… it can get very expensive. If you were buying the trucks, any types of repairs needed, you would solely be financially responsible for and that can eat at your budget. What if you didn’t have the money for the repairs?
That would have the potentially stop business from going on, depending on how vital that particular truck is to the completion of your project. That would leave you to miss out on financial opportunities. According to fleetanswers.com, a fleet truck that’s vital to the functioning of your business can cause you to lose as much as $700 a day and more! So it’s definitely something to think about when considering renting or buying.
If you were renting a truck, the truck rental company would be able to provide you with a replacement truck while you’re waiting on the other truck to be repaired because, of course, business must go on, right!
Proper Licensing and Insurance
In case you didn’t know, fleet vehicles are required to have commercial licensing and obtaining it with buying your fleet of vehicles can be very expensive, depending on the state. Prices vary depending on things like how much the truck carries and what the truck is used for. Those types of things can tilt the cost scale from the low end to the high end. If you were renting the trucks, all of this would be figured into your total cost of renting the truck month to month for however long you’re renting it for.