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Owning or growing any type of construction or service business requires significant capital, most of which is borrowed to be able to purchase equipment and supplies that are needed. In the case of smaller companies, finding such money – even just part of it - is sometimes difficult. Smaller business owners usually do not feel comfortable taking on as much debt as would be needed to build or enlarge a work fleet of heavy-duty trucks, as some small companies only consist of a few people operating in a very localized area. In such cases, initially renting the equipment could turn a situation around at much less financial risk to the owner or financing bank. Renting Versus Buying There are many circumstances under which buying is just simply not an option, even while that same business desperately needs to be able to buy one or more commercial trucks. It can be such a difficult situation; however, as difficult as it may initially appear, there actually is a solution that many smaller companies have found to be successful, and that is to rent the needed trucks instead of purchasing them. Leasing commercial vehicles such as pumper trucks can really help many businesses, especially smaller ones; it can give any company a much-needed chance to actually expand or replace an older fleet without taking on the massive debt that buying large, heavy-duty trucks would create. It also alleviates the problem of smaller businesses not having enough credit or payback ability to even get a loan or financing in the first place. Of course, the cost of the rental needs to be included in operating costs; however, leasing a truck that can be returned with no monetary loss if there are any budgetary problems can be safer. Controlling the cash flow is vital for small businesses – and renting allows for a balanced payment schedule that is usually significantly less than what might other have otherwise been possible. Knowing When To Buy As with anything else, renting when that is the only option can indeed be the best choice; however, it cannot be denied that the best choice will always be to buy heavy-duty trucks. Buying commercial vehicles such as pumper trucks is a wise decision for any company wanting to gain the benefits of money savings and increasing equity. Leasing may not have to last forever, so when the time comes that it is no longer necessary, purchasing a commercial truck is then possible. This is where setting goals and plans for the future as well as having more equity in their own operation comes into play. There can come a time where renting no longer makes monetary sense, so setting goals on when to buy is a great thing to do. So when is a good time to buy new or used heavy-duty trucks? Most of the time, that will be an individual decision; however, a common guideline is to consider purchasing when rental costs equal what a truck would have cost. A rent-to-own arrangement would be ideal and fit in exactly with this type of plan. A commonly heard goal amount involving pumper trucks is to consider purchasing one of these vehicles when $100,000 has been spent in leasing costs. If the business has been run well and finances correctly handled, there should be enough money available at that time to make a large down payment and then arrange for a loan to handle the remainder of the cost. Every company’s financial condition and goals for buying necessary equipment such as pumper trucks will be different; however, the main importance is to rent as efficiently as possible and set a goal for buying. Only by keeping that goal in mind will the time eventually come to turn the rental back in and drive back to the fleet lot in a company-owned vehicle! Christopher M. Hunter is an expert in commercial specialty trucks. To find out more about Pumper Trucks, go to the main website at: http://www.septictrucks.com/.
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