Should You Rent, Lease Or Buy A Semi Trailer?

While the ultimate decision will depend on weighing many different factors – including some that will be unique to your business – there are definite situations where one option will be preferred to another. Depending on the financial situation of your firm and your short, medium and long-term goals, having a bit of guidance to know what to do when your business is at a certain place will help you opt for the best choice when making a decision.

Let’s look at some of the advantages and disadvantages of each of these options to help you decide which route to take with your business:

Comparing The Pros & Cons Of Renting, Leasing, Or Buying A Semi Trailer

Renting a Semi Trailer – Pros And Cons

Trailer rentals are usually a short-term solution to your transportation needs. If your business is unexpectedly, and temporarily, in a situation where your capacity to meet your demand is not available, then renting can provide a quick fix to fill the gap. Of course, some businesses rely on renting equipment haulers and flatbed trailers as part of their baseline business plan though this is not usually the case.

Pros

  • Great when you need to fill a gap in your transportation capacity quickly.
  • Optimal solution for when you have seasonal or temporary demands that exceed your existing transportation capacity.
  • Perfect when first starting a small business and you lack access to enough capital to invest in your own heavy equipment assets.
  • Best when you are uncertain about how long you will need access to a semi trailer.

Cons

  • Rates will ultimately be higher than when leasing or buying.
  • Does not provide your business with a liquid asset to increase its valuation.
  • Cannot add your branding (permanently) to the trailer.
  • Cannot upgrade or customize the trailer.
  • Your business is usually responsible for any damages, depending on the rental agreement.

Leasing a Semi Trailer – Pros And Cons

Leasing is a popular option that represents something of a balance between renting and buying a trailer outright. For a defined period and rate, you will be able to use a trailer to increase the transportation capacity of your business.

Pros

  • As with renting, the upfront cost of leasing is lower than buying.
  • Better rates than with renting.
  • Leaves more of your capital available for use on other operating costs.
  • Monthly payments that you can incorporate into your financial planning.
  • You will often be able to purchase the equipment when the lease period is over.
  • Requires less of a commitment than purchasing.
  • Leasing is less financially risky than purchasing. You can be confident that the trailer is yours until the completion of your term.
  • Allows you to enjoy the most up-to-date and specialized trailer equipment and upgrade more easily.

Cons

  • As with renting, leasing does not add an asset to your business that will increase its valuation.
  • May need to renew your lease on a regular basis.
  • Can potentially be more expensive than buying if you lease on a prolonged basis.
  • Leasing agreements may incorporate potential repairs into the cost even if no repairs need to be made.

Buying a Semi Trailer – Pros And Cons

Choosing to buy a trailer will give you complete ownership of the equipment. This provides the best peace of mind and certainty when it comes to being able to use the trailer for any purpose and to modify the equipment to precisely meet the needs of your business.

Before buying, it is imperative that you make sure that the prospective trailer you are considering will meet the needs of your business. There is less room for error with purchasing a trailer outright which makes the investment a bit riskier if you are not careful.

Pros

  • Buying is the cheapest option when considering the long term.
  • Gives you full flexibility and easy access to trailer equipment when you need it.
  • Provides you with a tangible asset that will allow you to add to the valuation of your business.
  • If you choose to sell, you will be able to get a return on your initial investment.
  • You will be able to customize and upgrade the semi trailer to accommodate any needs your business may have, including adding your brand to the exterior.
  • There may be tax advantages to buying a trailer outright.

Cons

  • Requires a large capital investment that your business may be unable to handle.
  • Repairs and regular maintenance will add extra costs to your balance sheet.
  • Purchased semi trailers will eventually become outdated and may be costly to upgrade or replace.

Other Considerations…

Whether you choose to rent, lease or buy a semi trailer, make sure that you always keep in mind the following points:

  • Find out about the maintenance record of the semi trailer that you are interested in.
  • Make sure that the semi trailer has all of the features that you need to fulfill the needs of your business.
  • Understand the terms of any renting, purchasing or leasing agreement.

Looking For a Semi Trailer Renting, Leasing, or Buying Sales Provider…?

Why Choose Desert Trailer Rentals?

As a transportation or logistics manager, warehousing or supermarket retailing professional, or a storage and trucking business, choosing the right semi trailer provider to rent, lease or buy a semi trailer from will play a large role in your success.

Desert Trailer Rentals Phx AZ

Make sure to weigh your options with this advice in mind to minimize risk and get the most value for your investment. When making the decision, be sure to choose an established company to work with who will be upfront about these advantages and disadvantages with you.

If you are looking for an experienced trailer provider to guide you through the process of renting, leasing or buying a semi trailer, then get in touch with the team at Desert Trailer Rentals today. Desert Trailer Rentals is large enough to meet any semi trailer needs your business may have yet are also small enough to be flexible and work with our customers to meet their needs directly. Our friendly and professional staff works with a commitment to all of our customers and will assist you in making the best choice for your business.

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