Commercial Loans | Trucks, Trailers and Equipment

When to Rent, and When to Buy

There are several occasions where renting is a good idea. It’s often wise to rent expensive tools that aren’t often used. And while it’s a fun tool to have, how often does the average Joe need a jumbo concrete breaker that can destroy 14-inch-thick concrete slabs? And unless you’re a plumber, how often does the typical homeowner need a ¾-inch and 100-foot-long drain cleaner snake?  What about a towable hydraulic auger? These are nice items to have, but they’re big, take up a lot of space and are expensive.

Not often, but in our conversations with trucking industry folks – occasionally someone mentions they’re considering renting a day cab or sleeper truck.

When is there right time to rent a truck and why?

Every situation is different, but owners occasionally experience a business spike and aren’t ready to jump in the deep end. So, they dip their toe in the water and rent instead of buying another truck – this scenario makes sense – sometimes.

Other times drivers tell us they’re truck is going in the shop for a few weeks and that renting is just a short-term solution – this certainly makes a lot of sense and is likely the most sensible time for renting.

We occasionally hear this one also, “I’m going to rent the truck for a while and if I like it, I’m going to buy it.”

We recommend drivers take a thorough test drive and get an oil, coolant and fuel analysis – legitimate sellers are willing to let a buyer give the truck a proper inspection.  Most are willing to let someone take a nap in the sleeper if it helps to close the deal.

This also, rentals are two to three times more than a normal monthly payment. Also, most dealers charge a daily, weekly and monthly fee for rentals, and charge additional for mileage, wear and tear and additional insurance fees.

Renting is a valid option if you need equipment quick for the short term, but it should never become a common business practice.

If you’re shopping for a truck, trailer or equipment and have questions about how to proceed – let’s talk.