Choosing a vehicle for your company arrives with much to consider, from the budget to the size or the choice to go second-hand or brand new. One of the biggest things to consider is whether you should lease your truck or buy it outright. For a few ideas to help you make that decision, read on!
Leasing a truck
Those who buy a truck for business purposes are then responsible for taking care of any maintenance issues. As you’ve probably guessed, the maintenance of a larger truck can get pretty expensive over time, plus when you own the truck you’ll incur the downtime when you’re waiting for the vehicle to be fixed. Choosing to lease a truck via a company means that you don’t have to concern yourself with the downtime or costs of maintenance issues. It’s also worth considering the insurance costs you’ll incur if you purchase your own truck- (as these can be pretty high).
Those who work in the trucking industry would be well advised to check out some working options with Knight Transportation- but Why Contract with Knight? Well, there are plenty of good answers to that question! Firstly, Knight offers multiple truck lease options and does not charge rental fees. As well as this, you’ll get plenty of protection, fuel discounts and flexible payments on your lease. Renting a truck provides you with more flexibility, which is always handy as a business owner or professional with changing needs. If your company needs change, your free to move on and look at other options, without being tied down to an asset you no longer need.
Buying a truck
The main advantage of buying is that you’ll be making an investment. If you take good care of your vehicle and need to sell it on one day, you could see a return on your investment. You’ll gain another business asset and you’ll have total control of ownership, which is an attractive option to many. Having said this, it’s worth considering depreciation, because you could stand to lose money this way. As soon as you begin to drive the truck, the value will begin to diminish. Do your research on vehicle options that have a slower depreciation rate before you make a commitment.
Lastly, renting a truck from a company could mean that you have a nice storage space for the vehicle-included. When you buy your truck, you might have to put a little more thought into a storage space, (it’s likely you’ll have to find an appropriate space and then pay to keep it there). Overall, for an easier option to save money– leasing a truck for your company might be the way to go in your circumstances! Buying a truck might appear to gain you an asset, but you may lose money on depreciation and maintenance issues. When you’re running a business, it’s wise to always choose the most cost-effective and flexible option.