For Australian businesses of all sizes and across all industry sectors, managing cash flow and capital expenditure in the face of demanding operating conditions can mean the difference between success and failure. For some, running, maintaining and managing their own fleet of commercial vehicles works, for others, the option to rent a well maintained, modern vehicle on an as needed basis has many tangible benefits. These are some of the reasons you should hire instead of buy your transport equipment.
Buying transport equipment outright can be more expensive
Buying commercial vehicles outright or opting for a long term leasing arrangements are generally the most expensive options. Renting a vehicle often ties up less capital and frees up capital for use to greater effect elsewhere in the business.
When weighing up the benefits of renting commercial vehicles, talk to your CFO or Accountant about the implications of:
- Rental Agreements – known, fixed costs make cost projections simpler, freeing up capital for other uses.
- Repairs – maintenance, replacement tyres and compliance costs add up quickly, these costs are covered by the rental agreement and covered by the rental company.
- Depreciating assets – The Australian Tax Office has revised the rules which may not work in your favour.
- No fleet management headaches – plus the benefits of free 24/7 roadside assist when needed.
Flexibility and responsiveness
Every company has to manage the inevitable peaks and troughs experienced during the course of the year. This is where a work ready hire vehicle, ready to respond to the specific needs of your business can pay dividends.
Hiring a truck, trailer, bus or ute allows you to deliver on your commitments without the ongoing expense associated with owning the vehicles.
Similarly, hiring a specialised vehicle for a specific purpose or time frame is a sensible solution to a short term problem. The flexibility of a rental vehicle helps you to keep your clients happy by meeting demand and time-lines in peak periods. Returning the vehicle or equipment when business is quieter and is no longer required means you save money because there is no expensive downtime.
No expensive maintenance
Over the life of a vehicle, maintenance, repairs and compliance are major expenses.
Renting a commercial vehicle allows your business to have access to a modern fleet of vehicles on an as needed basis thereby avoiding expensive maintenance costs or downtime.
A modern, well maintained hire vehicle will seamlessly integrate into your business, saving you both time and effort. Essential servicing or repairs are scheduled, meaning the impact on your business is minimised and there is no lost productivity.
Breakdowns when they happen can be a logistical nightmare. Hiring from a reputable company means you are covered by the rental company’s breakdown service policy and they take care of business. It also means your company avoids the overheads of in house workshops and employing technicians or paying expensive external repair bills.
When you weigh up all the pros and cons of rental versus purchase, the balance is in favour to hire instead of buy commercial vehicles to service your company’s specific needs. For more information, get in touch with our friendly team today!