Should I Buy or Hire Truck For My Business?

January 04 2019
Truck Hire Melbourne

A significant question that every company in Melbourne comes across nowadays is whether to buy or to hire? This is obvious in everything, from property to printers and trucks are no different. Most of the Melbourne business has some kind of transportation needs, while some manage their transportation in-house, other consider outsourcing it.

There might come the time when you will face the same question, whether or not it is worth to buy or hire a truck. Of course, there are pros and cons for each case, but the thought here is to find out what works best for you. One of the very first thing that many Melbourne business owners do is go and straightaway buy a new truck for their business, only to realize that further down the road, that was a bad decision. While on the other hand, many will end up using an old and outdated truck that doesn’t cater to their needs anymore.

So how to discover the best option that will work for you? The answer lies in what are your actual hauling and usage needs. If you make few deliveries a month, it’s wide to opt for truck hire in Melbourne rather than buying a new truck and setting your business back thousands of dollars. The decisive question for you should be – what is the cheapest transportation option? Here we will focus on the pros and cons of buying or hiring a truck for your business.

Take A Call

Determine if you are going to use your truck round the clock. It makes a huge difference whether it is a one off routine or used weekly. If you have just started your business and need to transport bulky equipment or large display cases and there is really no further need for a truck after that, then certainly you should opt for truck hire in Melbourne. If you are going to require a truck for delivery on regular basis, than it is an altogether different story.

Hire vs. Buy

When you buy a truck, you not only upgrade your assets but also pay up-front initial cost and other finance charges on the truck. Here you need to do the thorough assessment that “how much will my cash flow be affected?” and “how much will the payments be?” As far as the taxes are concerned, you can depreciate the truck for a set time period. But, the bottom line here is that you have funds allocated for the things that might go for better usage.

When you lease a truck, you pay for less than 100% of its worth. At the end of the lease, you have an opportunity to either buy the truck or return it to get a newer model. Leasing a truck resolves the maintenance problems that occur over the time. It gives you a benefit of choosing a truck that you otherwise wouldn’t consider buying.

So what about opting for truck hire in Melbourne? Hiring a truck allows you to have a specific vehicle that caters to your different needs. It gives you access of the latest model without worrying about any maintenance or servicing costs. This reduces your overhead costs and allows you to focus on more important things.

There are 3 main aspects that you need to consider while making a big decision. It includes:

Truck Hire Melbourne

  1. Risk

If a business owns its own truck, it has to implement and manage policies to secure them such as maintenance programs, liability coverage policies, vehicle tracking systems and many more. By managing these requirements in-home, businesses take on the risks of accidents, breakdowns and injury to personnel working around.

When you go for truck hire in Melbourne, you are paying the professionals who have certified workshop facilities, comprehensive driver training programs, loss control divisions and liability cover policies.

  1. Focus

Being an owner of the company, you are actively involved in the important business processes. If you were supposed to source and maintain your own truck, human resources, liability cover policies, etc, it should shift your focus from the core activities. Companies offering truck hire services ensure that all these activities are taken care of. This not only saves you time and mind but also help you focus on more important aspects, ensuring that your quality standards are kept.

  1. Finance

In terms of finance, the advantages of truck hire Melbourne services are tremendous. First and foremost, unless transportation is your core business, trucks are not assets but the liabilities that depreciate over time. One would need huge capital for buy, maintenance, insurance, repairs, skill, etc.

While on the other hand, the business owner only needs to pay a fixed monthly rate allowing him to spend money on more important things. Here you need to take into account that, trucks depreciate at a rapid speed. By taking the route of truck hire, instead of a depreciating balance sheet, your transport requirements can be exhibited as a tax-saving expenditure

Pros and Cons of Hiring vs. Buying a Truck

  • Truck Hire in Melbourne

Pros Cons
No major up-front investment You can’t exhibit in your asset register
Fixed monthly cost with no maintenance or repair bills You don’t own it so you can’t make modification when required
If needed, trucks can be upgraded and swapped
Meticulously maintained, state-of-the-art truck
  • Truck Buy in Melbourne

Pros Cons
You can show it in your balance sheet Significant initial up-front cost
You can off-set the large upfront cost against

A tax liability

It may present unexpected huge maintenance expenditures
You can make the changes as required You are liable for services and repairs
It will depreciate over time

Final Words

Whether you consider hiring or buying truck, no matter what your final decision it, always be aware of the bottom line. If you are confident enough that you are going to get good ROI out of your truck, then certainly buy one. If you have even a tiniest of doubt, it’s probably best to opt for truck hire in Melbourne. No matter what you decide, do your own due diligences before you make sign a renting contract or rush right out to purchase one. Your wallet will be grateful to you in the long run.

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