The German Car Blog

In Uncertain Times, Should You Buy or Rent Your Commercial Vehicle?

21 June 2019 by Yvonne Carter

Businesses are facing uncertain times with political forces at play and the state of the economy. No wonder organisations are thinking twice about making any capital purchase and looking at alternatives instead. This is particularly the case for companies that rely on vehicles for transportation, and you may be in this position at the moment. You do need to replace some of your vehicles from a practical perspective, but should you buy these now or rent instead?

Capital

Consider the best use of your available capital first. Certainly, you may be able to get some kind of incentive from the government, especially if you buy a vehicle with lower emissions, but is this the best use of your cash? You may be able to buy second-hand vehicles as one way of saving or reducing your capital outlay but bear in mind that these vehicles may not be state-of-the-art, and you may fall foul of more stringent regulations in the future.

Ongoing Costs

When you purchase a vehicle, you are then responsible for its upkeep, maintenance and repair. If you rent instead, then the provider will ordinarily deal with this for you, and you may even be able to get a replacement vehicle into the bargain. Don't underestimate the cost associated with maintenance, especially for vehicles that cover a lot of ground each month. Could you benefit by reducing your maintenance staff quota and turning over this responsibility to the rental provider instead?

Latest Specification

When you rent a vehicle, you will undoubtedly get something that is state-of-the-art and will conform with any legislation when it materialises. If you buy instead, then you may find that your vehicles are somewhat out of date within a matter of years and may not be as efficient as the latest specification alternative. Certainly, you could retrofit your existing fleet by buying the appropriate item of technology, but this involves time, effort, cost and hassle. In this case, it would almost always be better to rent the latest type of vehicle, which will be complete with the latest technology.

Flexibility

Finally, don't underestimate agility and flexibility. You will want to take advantage of opportunities as and when they come along and may want to change the specification of your fleet accordingly. If you bought your vehicles outright, then this may prove to be quite a challenge.

Making Your Choice

Talk with a commercial vehicle rental company and carefully explore your options before you decide.

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