Lease, Rent or Buy Trucks and Trailers?

When considering buying, leasing or renting a truck or trailer, you want to get exactly what will keep your business running and your budget within limits. Assessing your requirements will help to make the choice easier as there are various pros and cons for each option.  To start with, are you looking for a long-term or short-term solution?  

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Renting is generally considered a short-term option (under 12 months). Leasing is commonly a long-term commitment (12+ months) without the hassles associated with ownership. 
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To dive into the details, here is a list of the benefits and drawbacks of renting, leasing and purchasing trucks and trailers.

 

Benefits of Renting/Leasing Trucks and Trailers 

Deciding whether you need to rent or lease a truck or trailer requires an understanding of how the product relates to your business needs and budget. 
 

• Usage 

Renting trucks and trailers is a wise choice if you require short-term solutions to satisfy your haulage needs; for instance, if you need to move cargo for a once-off job or a small number of hauls. Renting is also a good idea if a once-off job requires specific requirements, such as telematics. You might want to rent out this technology for a single-use purpose rather than investing in the long term if it is not aligned with your business needs.  
 
If you need to perform regular haulage jobs for 12 months or more, then leasing is your best option. Due to the economy of scale, you will get better rates leasing than renting if you need vehicles for longer than a year. 

• Maintenance  

When renting and leasing trucks and trailers, you cut out much of the hassle and focus only on getting the job done. You don’t have to deal with financing, registration, insurance, and all the legal paperwork required for ownership. Truck and trailer maintenance may be provided, too, giving you peace of mind. 

• Flexibility 

Renting trucks and trailers provides a lot of flexibility that gives you the freedom to select rental options according to changing needs. You can choose when to cancel or extend contracts, add, or remove products, or make any adjustments when required. This makes renting a very adaptable option for short-term solutions. 
 
When leasing, you can usually adjust your agreement based on terms and conditions. For leasing, flexibility is a factor when thinking long-term – you may be able to change vehicles in your fleet according to your needs. This is better than ownership which entails advertising and selling vehicles when you need to change. 

• Budget 

People often consider renting a truck or trailer due to budget requirements, especially if you don't have to consider a down payment. Rental agreements come at a fixed fee with no hidden costs. This means you can carefully consider your budget. 
 
Although leasing might appear to be the most cost-effective option at first glance, it depends on frequency. If you only need to lease a truck or trailer a few times, then it does not make sense. But if you require regular usage over a 12-month period and do not have the budget for ownership, then leasing might be the right fit for you. 

Benefits of Buying Trucks and Trailers 

Owning your trucks and trailers can be a valuable asset as the world’s entire overland logistics industry depends on them for its haulage needs – there’s always a demand. Depending on your business and usage type, buying trucks and trailers can be a worthy investment in the long term. 
 

• Investment 

Having a retained capital asset like a truck or trailer adds to your portfolio and helps you leverage collateral from owning a valuable commodity. Any investment into your business is a worthwhile decision as it helps grow your operations.  
 
The return on investment for purchasing trucks and trailers is highly beneficial: you can use them to provide service or rent them out to add revenue. You can also make some of your investment back when you sell the commodities. Additionally, as they are considered a business asset, the tax deductions for depreciation can offset the initial cost of purchase, further adding to your ROI.  

• Usage 

If you require regular or semi-regular usage, then the cost of purchasing will work out to be more affordable than renting a truck or trailer. For example, if a truck cost €‎500 per day to rent and €‎5,000 to buy, then purchasing it will be more cost-effective if you use the truck more than ten times. Even if you are unsure about the frequency of your business haulage needs, you could consider leasing your truck or trailer to further drive ROI and justify the upfront expense. 

• Maintenance  

When purchasing your own truck or trailer, you get what you pay for as per the conditions of the sale with no additional hidden costs. This means that upkeep, repairs, and maintenance will be an ongoing cost you will incur. If you take good care of your vehicle and trailer, you may reduce the costs associated with repairs in the long run.  
 
Some third-party sellers and rental/leasing service providers of well-maintained used trucks and trailers can offer excellent maintenance and repair plans. For example, TIP Used has over 130 workshops that provide lifecycle maintenance and repairs. Outsourcing maintenance services gives you more control over the future of your asset. 

• Flexibility 

Having your own trailers and trucks also means you can use them how you see fit without having to comply with rental providers’ terms and conditions. This gives you the freedom to rent, modify, customize, and use your fixed asset according to your needs. Having your own truck and trailer also means you never have to worry about availability so you can always uphold your logistics promises. 

Final verdict

Deciding whether to buy or rent a truck or trailer relies on having a clear sight of your bigger picture. If you need convenient once-off/short-term logistic solutions without any hassles associated with long-term ownership, then renting is your best option. 
 
But if you are looking to make regular use of your truck and trailer, then considering ownership is worth investigating according to your business needs. Owning your truck and trailer involves understanding the true cost of ownership: this means every expense incurred including upfront costs, financing, licensing and insurance fees, maintenance and repairs. Depreciation is also a consideration, but if you keep your components well-maintained then this should not be a major issue. 
 

Expand your fleet with TIP Used 

TIP Used – part of Europe’s leading truck and trailer leasing and rental provider TIP – is one of the largest suppliers of well-maintained second-hand trucks and trailers in the commercial vehicle sector. With over 55 years of experience, TIP Used is the most trusted and respected name in the industry, offering a variety of well-maintained used products from the best brands in Europe, including Krone, Schmitz, SDC, Volvo, MAN and DAF.  
 
At the 130 TIP workshop locations, you can also request any modifications to a vehicle before purchasing while enjoying extra services such as lifecycle maintenance and repair, as well as, digital services. 
 
Visit TIP Used  to find the used trailer that best suits your haulage needs on budget and expand your fleet without compromising safety and quality!