18 Jan Should Businesses Lease or Buy Truck For Their Transportation Needs?
If you have at any point considered getting a truck for commercial purposes, then the options of buying or leasing would probably have come up. This article seeks to describe the benefits of truck rental Singapore.
Advantages of Truck Leasing
Naturally, purchasing a truck upfront is more capital intensive and requires that you account for depreciation costs in the long term. In contrast, commercial vehicle rental affords you greater agility due to shorter term horizons and allows you to avoid depreciation cost. By avoiding such high capital cost, especially for new start-ups, you will have greater ability to meet unanticipated needs that arise in other aspects of your business.
The operations of your business will not be the same for the entire year. Demand rises and falls with varying levels of unpredictability. If your business experiences seasonality, truck rentals would be a more viable solution as you have greater flexibility to overcome such variation. In this case, you would avoid the depreciation cost of idle capacity.
Making arrangements with a truck rental company is way easier compared to buying a vehicle. Leasing a truck requires far less effort from you as it involves minimal paperwork and a lower upfront cost. Furthermore, truck rental Singapore companies offer flexible arrangements for prospective clients.
When is Buying the Right Option
Buying your own commercial truck affords you greater control over its use and customisation. In particular, you will not need to restrict mileage driven per period which is often a requirement in leasing. Additionally, you can customise the truck for your business needs without seeking permission.
Ultimately, it is up to you to evaluate your current business needs, forecast anticipated returns and then decide if buying or leasing a truck is the better alternative for you.