There are lots of industries that rely on trailers to deliver goods or transport supplies, but the question many businesses may be asking is whether it is worth buying a trailer or should they hire one instead?
We’ll look at the pros of both renting trailers and purchasing them to give companies in the agriculture, construction, leisure, equestrian, and commercial transport sectors a better idea about what would suit their enterprise best.
Hiring trailers… The pros
Reduced upfront cost
The biggest benefit of hiring a trailer over buying one is the lower upfront cost. Purchasing a trailer is a large expense, which many small and medium-sized enterprises might not have.
The same is true for start-up businesses or seasonal ones, as they may lack the capital to buy a trailer outright.
This money could instead be spent on other things, such as staff members, marketing or equipment, which may be more valuable to the business to enable it to grow.
No maintenance costs
Another advantage of hiring is that companies do not have to worry about paying for maintenance costs, such as trailer repairs or servicing, as the rental company will handle all of this.
Freedom from admin tasks
Companies can also be free of the administrative burden of trailer maintenance, allowing staff to concentrate on other areas of the business.
They do not need to worry about staying compliant with changing legislation, and if the trailer breaks down, there will be minimal disruption to their operations, as the hire company will provide a replacement as soon as possible.
At the same time, hiring means you can always have a roadworthy fleet of trailers, so you do not have to worry about any gaps in operation, reducing inefficiency.
Enables scaling up or down
A benefit that is particularly relevant to seasonal businesses is the ability to scale the number of trailers needed up or down.
For instance, a festival company can increase their trailers during the summer months when demand is high, without having the cost of storing and maintaining the trailers during the winter.
Similarly, the ability to scale up or down easily enables all businesses to respond to market demand. By hiring, they are not tied into owning a trailer and all the expenses this comes with during quiet periods.
However, when demand picks up, they can easily increase their fleet, allowing them to adapt to their changing needs as a business.
Avoid depreciating assets
Like cars, the value of trailers depreciates over time. Therefore, companies will never recoup the investment they spend on their trailer.
However, the convenience and flexibility of having your own trailer may make it worth it.
Buying trailers… The pros:
While there are lots of benefits of hiring trailers, there are also advantages to owning them too, particularly if your business relies on immediate access, a large fleet, or efficient operations.
Long-term savings
Hiring a trailer means you do not need a large upfront cost. However, it can result in a greater expense in the long run.
This is because renting trailers regularly results in a larger outlay for each trip taken. If a company needs to use one or more trailers daily, then hiring them could prove very costly over time, even with repair and maintenance fees taken into account.
Reliability
There is nothing more important to a growing company than customer satisfaction, as this leads to a positive reputation, which results in more business.
Reliability is key to this, as being known for always meeting customers’ or clients’ expectations means they will have a good experience.
Having your own fleet of trailers means you always have access to one when you need it, even with short notice.
If you hire a trailer, on the other hand, you are at the mercy of the availability of one from the hire company.
Not only will you have greater flexibility because the trailers are ready instantly, but so are the tools and equipment stored inside them. This means you are able to respond to client demands immediately, boosting your reputation as a brand.
Tax deductions
Businesses are able to claim capital allowances when buying equipment, machinery or vehicles, which means their value is reduced from profits before paying tax.
Therefore, this could make the financial investment significantly lower than you initially thought.
Customisation
Owning your own trailer or trailers outright means you are able to customise them any way you want. This could include putting your branding on the horse box, mobile catering van, or car transporter, which would help advertise your business to anyone seeing it on the road.
By boosting brand presence, this could have a big impact on business uptake, as the company gets exposure every time a trailer is being used.
Firms can also customise their trailer by adding shelving or units that would suit their vehicle best, increasing storage and operational efficiency.
Increases professionalism
Having your own trailers is a significant investment, but ultimately, it increases the professionalism and efficiency of a business. It makes the enterprise look good to the public, increases brand awareness, and improves operations.
Therefore, for companies that have the capital available, it might be something well worth investing in for the long term.