The decision of whether to rent, lease, or buy a semi-trailer should not be taken lightly. Each offers advantages and benefits over the other options.
If you’re like the vast majority of fleet owners across the country, the answer is frequently a combination of each one. According to the National Private Truck Council, over 60% of carriers own their semi-trailers, while approximately 40% lease a significant portion of their fleet assets.
When deciding between renting, leasing, and owning, there are several factors to consider, including:
- The duration of your requirement
- The condition of your existing equipment and facilities
- Your capacity to handle equipment maintenance
- Your creditworthiness and cash flow
When Should You Rent?
In general, renting is best for short-term transportation or storage needs, ideally for a month or two. If you need any longer, you should consider leasing.
However, if your business is seasonal, or if a huge contract or a new client comes in that needs extra fleet assets but does not justify a long-term lease or purchase, renting can be an ideal solution. Renting is also an excellent choice if a leased or owned item becomes unusable due to an accident or the need for maintenance.
When Should You Lease?
Due to evolving industrial technologies and a scarcity of technicians to service and repair today’s semi-trailers, leasing is becoming an increasingly popular choice. Leasing has financial advantages and can be less expensive in the short term than ownership because you are simply paying for the use of the semi-trailer. Leasing also has fewer upfront expenditures and credit constraints than buying. It’s an excellent choice when cash flow is limited or project margins are tight.
You can also declare the semi-trailer as a monthly expense rather than an asset on your records. Leasing is also an option if your company is rapidly expanding and you require your capital for investment in other areas.
When Should You Buy?
Of course, owning offers particular advantages in terms of tax concerns, such as the ability to depreciate the semi-trailer as an asset. But there are also ownership expenses.
When you buy, you must also consider the cost of ownership, which includes routine maintenance and administration of the trailer, including the cost of personnel to look after the asset.
So, Where Do You Begin?
New Way Leasing can assist you in making the best decision for your needs, including the lease or purchase of used semi-trailers to satisfy your fleet demands when cash is tight.
Assess your needs first, then weigh your options and look for a company with the resources and one that responds quickly.
Are you deciding whether to buy, lease, or rent the next semi-trailer for your fleet? New Way Leasing can assist! To get started, please contact us.