Many businesses need vehicles on a regular basis and business owners often don’t know whether they should rent them or buy them. Some businesses, like courier companies, might assume that they should buy them because their whole company is reliant on using vehicles every single day. But even then, there is a case to be made for renting because there are a lot of different factors to consider. So, should your small business rent vehicles or buy them? Answer these questions to help you decide.
How Often Do You Need Them?
This is the first question to ask because renting a vehicle isn’t always the most cost-effective solution if you use it every day. However, some businesses find that they only need them on occasion. Say, for example, you run a construction business and normally do small, residential jobs. You’ve got your own van and that is fine for the majority of your jobs. But every now and again, you have a bigger job and it would be useful to have a bigger vehicle. In this situation, you can use companies like Flex Fleet for commercial pickup rentals, use the vehicle for that job, and then return it. That’s a more cost-effective solution than paying for a vehicle that you hardly ever use.
Have You Considered The Maintenance Costs?
Even if you use a vehicle every day, it might be cheaper to hire it because of the maintenance costs. Trucks and cars that get a lot of use are prone to breaking down more often, especially if you have had them for a long time. But when you rent a vehicle, all of the maintenance is handled for you and if it breaks down, it will be replaced right away. Old vehicles will be updated too, so you’ll always have modern vehicles to use, which is better for your carbon footprint too. If you buy a vehicle, it might be cheaper for the first few years but as it gets older and you encounter more maintenance issues, it will become a drain on your finances.
Do You Have Any Other Assets?
It’s important for a business to have assets. They can be a real lifesaver if you get into a difficult financial situation because you have something to fall back on. If you run a business that is reliant on vehicles and you have a lot of cars and trucks, you can use that asset to raise some quick cash if you own them. But if you rent your vehicles, you don’t own them and if the business has any debts, you can’t use your fleet to fall back on. Having more assets also increases the value of your business and makes it more attractive to investors, which helps in the future as you try to expand. If you don’t have any other assets, it may be worth buying your own vehicles.
Ultimately, you have to consider what is best for your business but answering these questions should help you decide whether it’s best to rent or buy your vehicles.