When it comes to sourcing assets, the cost is a significant consideration, and many firms believe they only have two choices: spend a fortune or go without.
“Do I need to buy this?” is one of the first questions you should ask yourself when considering an asset purchase for your company. The thing is, there are many alternatives to buying assets for your business, and one of them is renting.
If you’re thinking of establishing a vehicle fleet or are perhaps looking to update it, renting instead of buying the vehicles you need can make perfect sense. Here are five reasons why:
1. Renting Is Often Cheaper Than Buying
There’s a common misconception that renting vehicles for a business is prohibitively expensive compared with buying them. The truth is that renting cars, trucks, and other vehicles is usually a more cost-effective way to maintain a fleet.
For example, there are tax advantages, and there is also the fact you don’t typically need to pay for a vehicle’s maintenance when you rent – irrespective of the rental length. In short, if you want to save money on having business vehicles, rent them instead of buying them.
2. Extensive Choice Of Vehicle Rentals
Another fun fact about renting vehicles instead of buying them is how you’ve got an almost limitless selection of choices. For example, Flex Fleet Rental offers trucks with hitches if you need to tow trailers, and companies like Avis let you rent all kinds of cars.
If you buy a vehicle, you’ll usually have to spend lots of time scouring the market and visiting different vehicle dealerships instead of getting what you need from just one or two suppliers.
3. Fewer Responsibilities
Although purchasing assets gives your organization control of its assets, this is not always a good thing. You are accountable for everything that occurs to the asset after you have complete ownership of it. That includes its disposal once it has outlived its usefulness.
When you rent a vehicle, you don’t have to worry about what happens to it once it is no longer fit for purpose. Moreover, you aren’t responsible for things like vehicle repairs and routine maintenance.
4. Plenty Of Support Available
When things don’t quite go according to plan with any vehicles you rent, you can get the support you need from your rental provider. It’s not quite the same concept if you own a car or truck outright.
That’s because you’d have to contact specific manufacturer dealerships or independent auto shops for assistance. Plus, you’ll usually have to pay them for their help.
5. Better Business Cash Flow
Last but not least, you’ll find that renting is a much better idea than buying from a cash flow perspective.
That’s because you’re not making a massive upfront payment for a vehicle and affecting your firm’s ability to pay for things like employee salaries, expenses, and the costs associated with business expansion and growth.