Should You Lease or Own Your Trucks?

Should you lease or buy trucks for your business? This is one big dilemma that many trucking companies in Australia grapple with almost on a daily basis. The truth is that each of these approaches has advantages based on the unique demands of your business. Some trucking companies also adopt a hybrid approach where they use both methods in order to increase the size of their fleets.

At the end of the day, you would like to maximize the performance of your business while also ensuring that your performance will stay on the positive side when you buy trucks. This is why it is always advisable to develop a truck acquisition or fleet expansion strategy that will adequately respond to your business needs. If you are already shopping around and planning to buy truck, then it can be assumed that you have already seen the need for expansion of your fleet.

There are several factors that will influence your decision on whether to lease or buy the trucks.  These include the type of the operation that you are engaging in, the configurations of the trucks that you are looking for, the routes that you are operating, the financial considerations and even the seasonality of the work that you are undertaking.

Leasing

It is often estimated that up to a third of the truck fleet relies on leasehold. The decision to lease your trucks is based on several considerations such as the operational factors as well as the financial considerations for the company.

One of the biggest advantages of leasing is that it allows you to easily expand your truck fleet without incurring a massive upfront cost. Additionally, you do not have to worry about those credit constraints that generally come with truck ownership. Because most small trucking companies generally have little capital and thin margins, leasing provides a very attractive fleet expansion option.

Another advantage of leasing is that you do not have to worry about the vehicle obsolescence. That is the burden of the leasing company. You will be able to make upgrades to newer truck technologies without any initial outlay in capital.

Buying

Ownership is the most popular option of fleet expansion preferred by more than two thirds of the trucking companies. Ownership offers you complete control of the trucks. Some companies prefer to own because that is the culture of the company or because they simply have the financial resources to buy trucks for their business.

Ownership puts you in charge of everything and you do not have to worry about any penalties and other hidden charges that may be imposed by leasing companies. Your company will be able to control all costs and get maximum flexibility in their use of the trucks.

The Different Types of the Commercial Trucks

There are many kinds of Condor trucks from Japan that you can purchase from UD trucks. These generally have a reputation of high standards of engineering that will deliver good performance and comfort. Whether you are planning to buy large truck or buy medium trucks, you can find great models with admirable specs that will certainly suit your trucking business needs.

You can also buy medium duty trucks that are of good quality and which generally deliver a superior performance compared to other peers in their class. With the quality, engineering and innovation in design, you can never go wrong with the UD trucks.