Choosing to lease or own doesn't have to be an either/or decision. Many fleets employ both strategies and base the choice on their current financial requirements or their specific operational needs. Factors such as vehicle application, configuration, organisational preferences, routes, seasonality, and tax/accounting considerations can influence the decision to lease or buy. There are pros and cons to both approaches. Penske can help you decide what makes the most sense for your business.
Owning equipment and other hard assets, such as warehouses or property, may be part of company culture or simply a financial preference. Operators with their own workshops may choose to purchase equipment so they can maintain it themselves and keep it longer.
There are, however, many hidden costs to ownership. In addition to the upfront purchase, costs related to ongoing maintenance, repairs, and recruiting and maintaining staff should be considered. Changes in technology and regulations may also require additional investment.
By outsourcing vehicle maintenance to Penske Truck Leasing, companies can leverage the economies of scale, investment in technology, and extensive technician training that Penske provides at a lower overall cost.
Leasing allows many operators to obtain equipment without the upfront costs and credit constraints of ownership. Leasing also eliminates the need for a down payment and allows the operator to expense the cost of the vehicle monthly rather than carry its liability on the balance sheet. That means more credit flexibility so the operator can put capital elsewhere.
Rapid changes in technology today mean vehicles become obsolete more quickly. With leasing, trade cycles are shorter and fleets can upgrade to new technology sooner than if they owned their vehicles. This may appeal to fleets that prefer to spec a premium product to attract and retain drivers, or for operators that want new safety-related technology.
A fully-maintained operating lease can benefit businesses that don't have their own mechanics or shops. In addition, preferential rental terms in lease contracts can allow fleets to increase capacity for seasonal work or short-term contract─and then reduce it when demand decreases.
|Trucks are spec'd based on actual usage by analysing the application, routes, capacity, geography, drivers, and freight.|
|Simplified financial planning with a single predictable monthly payment.|
|Track and monitor truck and driver performance with complimentary onboard telematics/GPS system.|
|Preventive maintenance intervals based on fuel burn analysis and in accordance with OEM recommendations.|
|Driver training by certified professionals at customer location or at Penske dealerships.|
|Government-mandated vehicle assessments performed and reported automatically.|
|Flexibility for growth so businesses can make sure their increased capacity needs will be met.|
|Disposal of old vehicles without wasting time, money or energy.|