Every day it seems as though we are moving closer to the economic market that we were accustomed to before the pandemic hit. However, the pandemic took such a toll on our economy that we cannot predict all the side effects that may possibly come. The repercussions could be temporary or long-lasting, so it is best to be prepared in any way possible.
Fear of the unknown can be damaging to many businesses, especially small businesses that do not have a lot of room to maneuver financially or structurally. That is why preparedness is so necessary. Look for ways to lower your overhead and stay away from investments that you cannot walk away from.
One way that small businesses can do this is by utilizing commercial vehicle and truck rentals over purchasing outright. Purchasing a brand new vehicle can be extremely costly, especially right now during the chip shortage. It could leave you with limited cash flow and a brand new vehicle that is not needed should the pandemic resurge again.
Here are some factors to consider when deciding whether or not renting commercial vehicles and trucks is right for your small business.
Protect Cash Flow
For many small businesses maintaining a healthy cash flow is a major concern. When you are starting a new business, you want to cut down on all the initial costs so that the business increases its profit margins. Since you want to avoid any major upfront costs, it is good to know that many fleet rental companies help businesses conserve their cash flow by not requiring large upfront capital like buying a vehicle would.
Depending on your type of business, your transportation needs may vary from one vehicle to a fleet. Unfortunately, these days that could pose a huge problem, especially if your business depends upon a significant number of vehicles to get the job done.
Many companies are running into issues when looking to purchase vehicles. Even if you can find the vehicles that you want, more than likely the price tag is going to be astronomical. To get around this dilemma, more companies than ever are considering renting their fleet. Many commercial vehicle rental companies give you a variety of vehicles to choose from. In addition, you can normally rent a fleet of vehicles or trucks all packaged into one contract.
Fewer Maintenance Concerns
As cliche as it sounds, it is true that time is money. At no time is this truer than when you have to stall work due to maintenance on a company vehicle. This is a costly situation due not only to time but also out-of-pocket cash for repairs. Fortunately, commercial vehicle rentals can help ease this burden and lessen the risk for such a scenario to occur.
When you rent a vehicle, you are more than likely getting a relatively new model vehicle that has been thoroughly checked before being rented out to you. Also, many rental companies will either cover the maintenance fees or work them into your monthly rate so that you do not have to be concerned about coming up with the money right away should the truck or vehicle need repairs.
Another beauty of commercial vehicle renting is that when the contract is up, you just return the vehicle. You do not have to worry about whether or not the wear and tear on it have diminished its resale value. All the concerns about what to do with it next are out of your hands. All that is left for you to do is to decide if you want a new contract, and if so, what kind of truck or vehicle you would need.
Commercial vehicle and truck rentals may not be right for every business. However, by evaluating these factors listed above, you will be able to make a more educated decision for yourself. Do your research and weigh the pros and cons to determine whether or not renting could be beneficial to your small business.