Buying vs Leasing Trailers: Where Will Your Capital Go?
This is the third post in our series on buying vs leasing trailers.
Rick and Steve make a decision about buying vs leasing trailers—conclusion
When we last saw Rick and Steve, they were narrowing their choices about the five reefers they needed. Now they’ve made their decision.
Rick and Steve walked out to the yard to look over their new reefers.
“That 2012 we just bought kinda stands out, doesn’t it?” Rick asked.
“Yeah, but Huge Store won’t care how pretty it is as long as it runs well,” said Steve.
“The four we leased from Add-a-Few look good, though, don’t they?”
“Yeah," said Steve. "I didn’t realize we could lease brand-new trailers.”
“With a great spec for Huge Store," said Rick. "So we can start delivering on that contract right away.”
They turned to walk back into the office.
“Hey,” said Steve, holding the door for Rick. “Guess what our first load is for Huge Store.”
“I don’t know,” said Rick. “Coffee?” He reached for the mug on his desk.
“Nope,” said Steve. ”Coffee ice cream.”
Big question when you’re thinking about buying vs leasing trailers:
do you want to do with your cash?
Sometimes it’s hard to find financing. Sometimes it’s hard to forecast cash flow. Sometimes the economy kicks you in the shins.
When those things happen, you may find it easier to lease, rather than buy, trailers.
Here are a few points to consider as you weigh buying vs leasing trailers:
Some extras aren’t extra.
And here are some cool (meaning worry-reducing, headache-preventing, really great) things you can get with a lease, packaged in your monthly rate. So factor these in when you’re thinking about buying vs leasing trailers:
- Emergency road service with access to a network of vetted repair vendors
- Online account management with all the account data you need on demand
- Trailer tracking and reporting
When you lease trailers, you outsource risk and you gain flexibility that may benefit both the financial and operational sides of your business.
Note: The information provided in this post is not intended to be legal or financial advice. Please consult a qualified professional for such advice.
Here are a few more takes on buying vs leasing trailers. Check them out.
- Infographic on the advantages of owning and leasing trailers
- Part 1 – Buying vs leasing trailers: advantages of each
- Part 2 – Buying vs leasing trailers: how do you handle an unpredictable market?
- Quiz on buying vs leasing trailers to help you figure out what’s most important to your operation when adding trailers to your fleet.
- How a request for 40 turned into 66