Should You Buy or Rent a Work Pickup Truck?
If you’re in the market for a work pickup truck, you may be wondering whether to rent, buy, or lease. Deciding whether to buy or rent depends on several factors including seasonality, liquid capital, and location.
When to Rent a Work Truck Instead of Buying
There are several times when it can be beneficial to rent a work truck instead of purchasing. For instance:
Contract Work. One of the primary reasons professionals choose to rent a work truck instead of buying is if their work is contract work in nature. This means it is temporary work and lasts a limited amount of time (for instance, contract mine workers typically work for a 3-6-month period at a time). In this case, renting a work truck means you have the truck for the period of time you need it but aren’t left to shoulder the cost during downtime. It’s also common for some contractors to wrap the rental fee into your contract so you’re essentially getting the transportation for free.
Seasonal Work. Another reason professionals may rent a work truck instead of purchasing is if their work is seasonal. If you only work 7-8 months out of the year, that means your truck may otherwise be sitting unused. In the meantime, even during downtime you’ll be paying vehicle loans, maintenance fees, and storage costs.
Augment a Fleet. If you already have a commercial fleet but have occasional needs that exceed your inventory, renting is a great way to augment the work pickup truck fleet during the peaks. Most financial advisors will recommend equipping yourself your standard workflow instead of panicking and equipping for the peaks. These professionals recommend using outsourced resources for peak periods; the reason for this is that equipping for peaks will tie up capital when you won’t be using the equipment full-time. If you’re growing but don’t quite have the need for an additional truck yet, renting a work truck can augment your needs until you have enough business to justify the additional expense of a new truck.
Lack of Working Capital. If your company is new, between projects, can’t justify a purchase, or can’t attain a reasonable interest rate for an auto loan, it may be difficult to purchase a work pickup truck. It can also mean financial liability that may not be the right strategic financial move for your company at the time. If your company lacks capital to purchase a truck but is in need of a work pickup truck, a pickup work truck rental can help bridge your needs until a purchase can be justified.
Supply Chain Issues. Even if you’re not in the car industry, you’ve probably seen the empty car lots at dealerships near your area. Many dealerships have extremely limited stock—and many have pre-sold all of the new vehicles arriving. Most trucks have to be ordered months in advance, which can mean you’re left without a work truck when you may need it most. A rental work pickup truck means you can receive the truck right away without the long, ambiguous timeline of dealerships.
Travel for Work. If your work requires you to travel but requires a truck on the ground once you get there, renting a work pickup truck in your work area can make travel easier and less expensive. Instead of driving from work destination to work destination, you’re free to take your preferred mode of transportation. Companies like Rangefront Wheels will meet you at the airport or your hotel with the truck to make the transfer easy.
Buying vs. Renting a Work Truck
There are situations when purchasing a work truck may fit a company’s financial strategy better than a rental. This is especially true for year-round work that can justify the expense and maintenance of a full-time truck. However, if you’re unable to purchase a work truck outright or can’t get a reasonable interest rate, purchasing a work truck can be a heavy financial burden.
One of the main reasons businesses may choose to own a work truck instead of renting is because once a truck is paid off, the vehicle itself is considered a business asset. Heavy equipment such as trucks can also have tax benefits, such as depreciation write-offs.
Is Renting a Work Truck Right for You?
If you would like to learn more about work truck rentals, please reach out! We are happy to help.