Renting vs Buying Transport Equipment For Your Business: A List Of Pros And Cons
May 10, 2018
There are many businesses out there that rely on the use of transport equipment. While there are some that invest the money into buying and owning the equipment themselves, there are others that choose to rent what they need from a company such as http://www.rentco.com.au/portfolio/trucks/. If you are on the fence about which idea is the best for your company, here is a list of pros and cons that should make things clear for you.
– If you buy transport equipment, it will always be available when you need it. There will be no need to call anyone and ask about availability. You can have what you need at your fingertips at all times.
– There are some expenses pertaining to the equipment that you will be able to deduct on your taxes. For instance, if there is something that needs to be fixed, the cost of repairs can be written off as a business expense.
– You will have to invest all of the money for the equipment right now, or at least come up with a sizable down payment. If you don’t have a lot of money on hand, this is not the best financial position to be in.
– Once the equipment is no longer usable, you will have to figure out how to dispose of it. This is not something that you can toss away with the regular trash. You may have to invest a great deal of time and/or money in order to get rid of it.
– If you do not use this equipment all the time, leasing is a good idea. This is because you can use it for a short time, return it to the owner and avoid having to pay a ton of money for something that is not in use.
– When the equipment has issues and there needs to be repairs made, that is something the owner will have to deal with. You will not have to worry about the costs associated with trying to get it back in working order.
– While leasing costs may seem pretty reasonable at the beginning, the reality is that all of this will add up. By the time you pay to use something for several years, you will have invested so much that it could have been possible to buy your own.
– There may be times when you need the equipment and someone else is leasing it. This can hold you up, which means that time and revenue can be lost. You will have no control over who leases it when you do not have it in your possession.
If you are the owner of a company that needs to have transport equipment available to them, you may have been wondering whether buying or leasing would be the best option for your business. Now that you have all of this information available, your responsibility is to ponder each point and make a decision that would be in the best interest of your business.