The truck rental industry is a relatively new but promising market. Trucks that are crucial to the daily operations of a business can be purchased or rented. Numerous companies rent commercial trucks to reduce the costs associated with operating heavy machinery. While buying trucks makes sense in many circumstances, lorry leasing in Singapore may be the better option in many cases.
If your business requires one or more trucks, here are 10 reasons you might consider renting them.
1. Smoother operations
A project is delayed if your truck breaks down unexpectedly or ceases operating effectively due to unforeseen circumstances. If you have a deadline, this can become an even bigger issue. Truck and van rental in Singapore can help avoid such unforeseen circumstances. Regular inspections are mandatory, and service teams are always available. It can help you save time and money while ensuring operations run efficiently.
2. Start a business with limited capital
Lorry leasing in Singapore allows you to put your startup’s limited funds toward more strategic investments in your company’s future. And should you purchase a truck, a significant portion of your company’s financial resources will be committed to the asset. If you rent a trust, you will also need money, but significantly less. The unnecessary funds for the truck can be invested in advertising campaigns, hiring additional personnel, securing a better location, or any other item that will aid the business in its early stages.
Startups frequently lack the capital necessary to make substantial investments in commercial fleet vehicles. In the face of seasonal peaks and valleys, pandemics, and other occurrences, even well-established businesses run out of capital. Renting commercial trucks lets business owners operate efficiently and effectively without fleet purchase costs.
3. Expand services
If your truck is limited to only a few operations, you cannot expand your offerings. For instance, you want to add landscaping to your trucking company. If your existing truck model is not optimal for landscaping, you can always rely on rentals to provide you with the most recent and best landscaping-appropriate truck models. Instead of purchasing a new truck at a substantial cost, you can utilise a truck or van rental service in Singapore.
4. Cope with a truck breakdown
Even if your company owns a truck, you may still need to rent one. Your company’s truck will eventually break down, but operations will continue. You will still need a means of transporting items. You can use a rental truck as a temporary replacement while your business’s truck is under repairs to keep operations moving. You could wait—but it may result in delayed shipments, refunds, and overtime pay. Lorry leasing in Singapore is frequently less expensive than incurring these additional costs, and it will not annoy your customers.
5. Manage a limited cash flow
If your company’s cash flow is constrained, you should rent a truck because doing so reduces the financial risk your company assumes. And if a company owns a lorry, it is responsible for all repair expenses. In addition to routine maintenance such as oil changes, tyre rotations, and brake replacements, you must prepare to replace costly components. If the engine or transmission fails, expect to pay tens of thousands of dollars to rebuild the vehicle.
Since your company is not responsible for maintaining rented trucks, you need not worry about potential expenses. If a lorry breaks down, the rental company must repair or replace it, and your business will have access to another truck.
Any business should consider lorry leasing in Singapore, but those with limited cash flows benefit the most. Without a substantial positive cash flow, you might struggle to cover a multi-thousand-dollar expense. Heavy expenses can sometimes devastate a business.
6. Avoid loan interest
As an added financial benefit, your company doesn’t have to pay interest on rented trucks. Truck and van rental in Singapore does not involve a loan, so no interest is generated. What a bank would ordinarily charge as interest on a commercial truck loan can be invested in your business or paid directly to you.
7. Proper management of seasonal demands
Numerous events have varying requirements, necessitating trucks of various sizes. Pre-booking a rental truck service provider’s fleet of vehicles is possible for any event, special occasion, or reconstruction project.
The small business market must contend with both peak and off-season demand. If you only have one truck, there is a chance that your business will receive a large number of orders, which could cause transportation issues. If you fail to deliver on time, you risk losing a potential customer. In this case, lorry leasing in Singapore is advantageous, and you can reserve various vehicles during the high and low seasons.
8. Rent for occasional use
If your business only occasionally requires a commercial van in Singapore, you should rent one on an as-needed basis because it will likely be less expensive than purchasing one. There will be no monthly payments, maintenance fees, depreciation, or insurance premiums to manage. Whenever your company needs a truck, it will only be required to pay a nominal fee.
9. Still deciding which truck to purchase
Occasionally, business owners are aware that they will eventually need to purchase a prime mover truck in Singapore. However, they do not know which model to buy. And if you are unsure of the features your business requires in a commercial truck, do not purchase one until you have made an informed decision. Instead, rent multiple models and ask employees which one they prefer. If you rent first, you can make an informed purchase decision when the time is right.
10. Avoid expensive fuel costs
Heavy-duty construction vehicles consume significantly more fuel than other vehicles. Constantly refuelling your prime mover truck in Singapore can be costly due to the fluctuating fuel costs. While fuel costs factor into rental rates, you are not responsible for refuelling the vehicle when necessary.
Determine the optimal rental plan for your company or business. Depending on the type of work, it may be weekly or monthly. The service will inform you of the most recent truck models and assist you in selecting the ideal one for your project.
Visit Think One Automobile & Trading to help you refinance your car loan in Singapore.