There are pros to each of the three options you have when it comes to a work truck – rent, lease, or buy. The right decision will depend on the current capabilities and situation of your company, as well as the plans you have for the future. Basically, you are looking for the most advantageous method for the success of your business now and in the long run.
Pros of Renting, Leasing, or Buying a Truck
To help you make a decision, we made a list of pros for each of the three options.
- Perfect for when you don’t have a lot of capital
- Leaves your budget free for more imminent expenses
- Access to a variety of work trucks
- In most cases, latest equipment is offered
- You don’t have to worry about maintenance and insurance
- Wide choice of payment options and types of lease
- Payments are predictable
- Tax benefits apply
- Leaves some cash for other expenses
- Equipment available at all times
- Flexibility in terms of purchasing or returning the truck at the end of the term
- Rather big investment for quality work trucks
- Cheaper over long-term
- Tax advantages can apply
- You can sell the truck when you no longer need it
- Convenience – you have the truck every time you need it
- Increase of assets without debt
How to Decide?
Surely, the best long-term option is to purchase a truck, but this is also far more expensive than the other two. In addition to buying the work truck, you’d have to keep the truck in good shape, as well as cover repair and insurance expenses.
If your current financial situation does not allow for it, renting and leasing are the two obvious choices. However, in case you need the truck too often and prolong the buying part, the fees from renting it can add up very quickly. The best decision in terms of renting a truck should be made when you need a truck but cannot afford to buy it, but you should definitely not allow the fees to add up and cost you more because of it.
Other choices you have is to buy used equipment, lease with an option to buy, or finance the equipment purchase on your own.
Before you make a final decision, you should calculate the cost of ownership and of renting. Consider maintenance and operating expenses, as well as insurance and government licensing with the first. Also, consider how much it would cost you to rent a truck in the long run. This will depend on the project length or the job frequency.
If you do not need the work truck for long, renting or leasing is the obvious solution. If you need it frequently and for big projects, you might want to consider buying it to avoid even bigger expenses.
Of course, the final decision is left to you. After all, you’ll be the one covering the cost of the work truck, so make sure to think it through before you opt for one of the three options.