How Long-Term Leasing Can Increase Your Margins
Running a business can be stressful, especially one that relies on commercial trucks. We’re living in a time when shipping and transportation costs are continually rising and, most likely, your expenses are increasing just as profit margins are shrinking. What do you do? Long-term leasing might be the answer to remaining competitive.
For many companies, one of the best solutions for expanding their fleet is to lease a truck from a reliable local provider. After all, it can help you keep costs low while improving your capacity for more deliveries. But, there’s more to it than simply signing an agreement. Here’s what you need to know if you want to supplement your current fleet and expand your business.
What Is Long-Term Truck Leasing?
Think of leasing as a hybrid that sits between buying and renting. If you need a truck for long-term use but buying one outright isn’t feasible, leasing is a great option. Depending on the company, long-term lease agreements are designed to last 5-7 years.
A leasing option is often a cost-effective solution, especially for business cash flow. There are several other benefits of a long-term lease too, including the availability of maintenance and repair services, roadside assistance, and customizable term and equipment options that suit your financial and business needs.
How Is Leasing Different from Short-Term Rentals?
A short-term truck rental can be very helpful if a truck is only needed briefly. The short-term agreement can last anywhere from a few days to several months. So, when a business needs a specific truck for an upcoming project or a quick replacement for a vehicle in the shop, renting can be a beneficial option as it will get you through without having to add a permanent or long-term addition to your fleet.
It is important to note, however, that short-term rentals generally have higher monthly costs, but they are offset by the short-term flexibility they provide if that’s what you need. For businesses trying to expand their fleet so they can take on more clients, short-term rentals will cut into your profits in the long haul.
Benefits of Long-Term Truck Leasing
A thriving business can only survive if you make wise financial decisions. Whether you’re expanding your truck fleet or just starting out, positive cash flow is a must. Long-term truck leasing makes it possible to grow your fleet quickly, with fewer upfront costs, as opposed to buying trucks outright.
Additionally, with full-service leasing contracts, you’ll be saving time and money on repairs, upkeep, and ongoing maintenance. These options will help give you peace of mind, allowing you to focus on making more money. Below, you’ll find more benefits of long-term leasing.
#1 Flexible Terms
While your long-term leasing agreement may require a down payment, the amount will be considerably less than it would be to purchase a vehicle. Furthermore, lease terms mean your monthly payments are fixed throughout the term of the lease, which gives you more finance options while freeing up capital. A reputable leasing company will also work with you to customize upfront costs and monthly payments that suit your budget.
#2 More Choices
Long-term leasing gives you access to more equipment models, as well as specific features. You’re also often permitted to add your personal branding to the vehicles, which can help you further build your business. However, these options are typically not available with short-term rentals.
#3 End of Term Options
At the end of the contract, most leasing companies offer the opportunity to either purchase the equipment or upgrade to newer models.
#4 Fewer Hassles
When leasing a truck, you can avoid the hassles of depreciation costs and road safety compliance issues.
#5 24/7 Emergency Roadside Assistance
Regardless of how well-maintained a truck is, when you log thousands of miles, unexpected problems will arise. Whether it’s a flat tire or towing is necessary. A huge advantage to a full-service lease is working with a provider that offers round-the-clock roadside assistance along with access to a replacement truck so you don’t lose valuable business.
#6 More Affordable and Better Profits
Lastly, one of the many benefits of leasing is that it doesn’t require a large capital investment. There aren’t any hidden costs associated with leasing a vehicle, such as taxes, overhead, and towing, as there are with buying a vehicle. Furthermore, your overall operating costs are lower for leasing compared to buying or renting a vehicle. As a result, your company keeps more money in the bank.
Explore Your Leasing Options with Suppose U Drive
When it comes time to lease a truck, it’s important that you choose a trusted and reliable partner who understands your needs. At Suppose U Drive, we have a large fleet inventory with a wide variety of models, and our long-term leasing contracts can be tailored to fit your budget and trucking requirements to support your growth.
Unlike other companies, you also won’t spend hours finalizing the paperwork. At Suppose U Drive, serving customers is the top priority and that means getting you on the road as quickly as possible. Suppose U Drive also offers short-term rentals, maintenance contracts, and 24/7 roadside assistance to keep you on the road longer.
Interested in learning more? Contact our team at 1-800-404-8800. And don’t forget to sign up for our free newsletter for more insights and information about the trucking industry.