Regardless of whether you’re an experienced fleet manager or owner-operator or a rookie in the trucking industry, acquiring trucks and truck equipment will always be a headache. In this ever-evolving truck technology, it is of utmost importance to have the fleet that can answer to the demanding efficiency goals and requirements. To do so, you can either upgrade your trucks often with the latest trucks equipment or take advantage of the popular financing or leasing services.
While many business owners are guided by the popular saying “If you can’t afford it, don’t buy it”, in this day and age you shouldn’t buy it even if you can afford it. Besides being able to cover the purchase price of the truck or trucking equipment you want, you also need to consider the maintenance costs, tax deductions, flexibility and other criteria. Unfortunately, many fail to estimate these additional costs and miss out on growth opportunities via leasing or financing.
Aside from the obvious advantage of reducing the cost impact of the acquisition, truck financing and leasing may just be the key component towards business growth. As the price of new trucks is constantly increasing due to new emission control technology, it has become much more difficult to acquire new assets than it was before. The higher the acquisition costs, the more the benefits of leasing and financing. Here we provide 4 great reasons why you should take advantage of leasing or financing services when buying new assets.
Better Control Over Your Costs
Every business owner wants to see profit increase with every month’s report. But that’s not very likely to happen if you tend to increase your fleet by buying new trucks and truck equipment on a regular basis. When you buy an asset, you need to consider all of their aspects: capital costs, insurance costs, taxes, legalization costs and maintenance costs. There is a long list of costs associated with trucks, including unpredictable, overlooked and subtle yet substantial ones. By hiring a leasing or financing company, the total operational costs will decrease significantly and you will enjoy huge money savings. Also, you will get a much better control over your money, as there are no such things as overlooked or unpredictable costs – these companies know their game.
Get the Latest Tech Quicker, Easier, Less Expensive
Leasing or financing allows you to add the best, most highly-advanced truck equipment that will help you get the job done quicker and easier for your budget. Whether you’re a small, medium or a large company, it’s impossible to upgrade your fleet every time there’s a new piece of tech that can improve your efficiency. Leasing, on the other hand, allows you to always have up-to-date equipment without paying its full price at once, as well as taking care of the other additional costs. Most leasing companies will also provide support for these new technologies, systems and equipment. This will make sure you won’t encounter cash flow issues.
The ever-changing economic climate, emerging competition and constant new inventions require flexible options for businesses involved in the trucking industry. Banks and other financing sources are much slower than financing and leasing services companies. After fulfilling an online application for leasing or financing, you may get approved or denied in a matter of minutes. The documentation is also simpler and more flexible, as 100% of the costs are spread out over the lease term you agree upon. This is a particularly cost-efficient option for small businesses, as they can operate with their limited budget better. Compared to buying truck equipment and trucks, you can operate with a more liquid and higher capital and spend it elsewhere to grow your business. Furthermore, there are many different types of equipment leases you can choose from to meet your business’ demands best.
One of the most difficult challenges every trucking business owner faces is maintaining a maximum uptime. Leasing and financing companies can provide the maintenance assistance you could surely use and help you keep your uptime at the maximum. When a piece of trucking equipment or a truck needs maintenance, most financing companies will make sure to return the vehicle all taken care of to the customer as soon as possible, because it is of their best interest too. In worst case scenario where your truck experiences a problem that cannot be sorted out soon, most leasing companies may even substitute your vehicle until yours is ready so you can get back on the road.
Whether you’re a small or large, new or well-established business, we challenge you to reconsider your cash expenses of trucks and truck equipment. Compare the surprisingly huge number of money spent on your fleet to the leasing and financing services fee and let the margin make the choice for you. You will be surprised how much money can these services save you. Get in touch with us to discuss this opportunity in further details today!