When it comes to purchasing dry van trailers, flatbed trailers, refrigerated trailers, lift gate trailers, or other semi-trailers for your business, how you do so is a critical tactical decision. Obtaining cartage trailers, storage trailers, and over-the-road trailers in a manner that best aligns with your financial strategy is critical to your business, whether you work in the trucking, warehousing, or transportation industries.
Is this the same as semi-trailer rental in NC? Can you save money by leasing a trailer for a longer period? Is it preferable to buy a semi-trailer? Answering those questions involves several factors.
Renting a Semi-Trailer for Rent
Renting a semi-trailer includes entering a short-term contract with a supplier and is typically utilized to meet a short-term, usually temporary, transportation capacity requirement. However, in some circumstances, it is a long-term or ongoing approach.
Renting a trailer is a terrific alternative if you’re looking for a low-cost solution to move your items.
- Need equipment promptly
- You’ll need a trailer for a short period of time or for an indefinite period.
- Throughout the year, there are peaks and dips in the workload.
- Are you starting a new business and in need of trailers to satisfy your immediate demands while you prepare your long-term strategy?
- Do you need to fill gaps caused by a shift in your leasing/purchasing cycle?
- The importance of speed, convenience of doing business, and cheap upfront costs cannot be overstated.
Renting is an excellent approach to gain immediate access to high-quality semi-trailers. There are, of course, certain drawbacks to renting. For example, the rates may be higher than those available through a long-term lease or purchase. Furthermore, some people believe that leasing or owning a trailer gives them a better sense of stability and continuity.
Obtaining a Lease for a Semi-Trailer
Over-the-road semi-trailer leasing is a contract between you (the “lessee”) and a provider. The lease’s “terms” say that you are permitted to utilize the semi-trailer for a certain period of time for the given fees. If you do not renew your lease, the provider retains ownership of the trailer, which you must return at the end of the term. You may be able to purchase the trailer at the end of the lease period in some cases.
Trailer rentals, like any other commercial transaction, have benefits and drawbacks. Some of the advantages are as follows:
- Lower initial costs when compared to purchasing semi-trailers
- There is little possibility of manufacturing delays influencing availability.
- The cash flow advantages of deducting leasing charges as a monthly expense
- Rate structure is superior to that of renting.
- Trailers tailored to a certain purpose
- The peace of mind that your trailers will be yours till the lease term expires.
If there is a “downside” to trailer leasing, it is that the semi-trailers are not your assets and hence do not contribute to your company’s valuation. Furthermore, while you have the security of knowing how long they will be in your ownership, you may not have the same level of trust as you would with an owned fleet, and you will need to renew the leases on a regular basis.
Purchasing a Semi-Trailer
Buying a semi-trailer is a significant financial commitment. Purchasing a trailer gives you many rights in how it is used or modified throughout the payment period, and full rights once it is paid off, like purchasing a structure for your business. In addition, every payment you make on a trailer acquired from a trailer sales company increases your equity.
- Buying a semi-trailer has several advantages, including:
- Having an asset that adds to the value of your business
- Controlling the trailer’s maintenance and any alterations
- Later being able to sell the trailer
Of fact, many businesses, no matter how successful they are, may never be able to afford to own a semi-trailer. Another disadvantage of owning a trailer is that it is now entirely your duty to operate and maintain it. You also lose the ability to adapt as quickly to changing company conditions as you would if you were renting or leasing.
Do you want to rent, lease, or buy a trailer? Here are a few hints.
There are certain important considerations to make whether you rent, lease, or buy trailers to meet your needs.
For example, you should:
- Know where, how, and by whom the trailer has been used in the past, as some previous usage (e.g., hauling heavy commodities such as paper goods) may render it unsuitable with your needs or a riskier investment.
- Check to see if all necessary maintenance has been conducted to date in accordance with the manufacturer’s schedule.
- Examine the trailer to see if it has the features you require for the task (e.g., roll door vs. swing door, air ride vs. spring ride, etc.)
- Check sure its specs correspond to the requirements of the location(s) where you intend to use it (for example, that it does not exceed the maximum height of bridges the driver will face or the length restrictions in larger cities).
- Ascertain that everyone understands who oversees the trailer’s upkeep, license, and insurance.