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Renting Your Fleet Can Help Your Contruction Business And Here’s How

by John Morris
March 10, 2022
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If you own your own construction company, you know that the work ebbs and flows. Some projects last several months while others only last a few weeks, and there’s bound to be some downtime.

When you manage a project-based company, the key to maximizing profits is to reduce overhead costs. Renting your fleet of vehicles is one way to do this. Let’s take a look at the advantages of renting vs leasing or buying.

Easy to Procure

If you have a project coming up but you don’t have enough trucks to get the job done, rather than dipping into profits to buy a vehicle, you should consider renting one. A fleet rental service can provide light duty, 3/4 ton pickups, or even flatbed trailers and all it takes is a phone call. Whatever your needs, most fleet companies can have your vehicles delivered the same week.

Having vehicles at the ready also makes it easier to expand. If you own your company, you know that bigger projects yield higher profits so it makes sense that you’ll be striving for growth. Landing a large project doesn’t have to be a financial burden and having an established relationship with a fleet rental service can eliminate some of the financial stress of expansion.

Easy to Return

Not only are they easy to procure, but when your project is completed, you make another phone call to schedule the pickup. This minimizes the logistical aspect of getting rented vehicles from point A to point B but it also saves you money.

Another thing to consider is the ease of trading a fleet vehicle in. If you purchase a truck only to find out it doesn’t have the towing capacity you need, you’re still on the hook for that vehicle. That goes away when you rent and all you have to do is call and have them bring you a bigger truck.

Cost-Effective

Project-based construction almost always has downtime and when you own your fleet, you’re still paying for it even when the trucks are sitting idle. With a fleet rental, you can eliminate those monthly payments when the vehicle is not in use.

Another savings measure is that when you rent a fleet, your company is only responsible for regular maintenance costs. If a vehicle has engine issues or other mechanical issues, the fleet rental service will swap it out with a different vehicle and handle the repairs on their dime.

Cheaper Up Front

Speaking of monthly payments, not every company has the ability to finance the number of vehicles needed to get the job done. One trick to running a construction company smoothly is to rent your fleet initially, saving the headache, time, and money of financing or purchasing outright.

The biggest advantage of renting for new companies is that to secure financing you need to have significant capital, and that’s just not something new businesses have right away.

Flexible Options

Even if you can afford to purchase the pickup trucks or towing vehicles needed for your project, what happens when you get a larger project? Can you afford to absorb the cost of owning several more trucks? The average cost of truck ownership is over $10,000 annually when you factor in the monthly payment, insurance, fuel, and maintenance. If you’re trying to turn a profit, it’s not likely in your company’s best interest to purchase 5 more medium-duty trucks. When you rent, though, you can absorb more vehicles when you need them and return them when you’re done.

Better Telematics

Fleet rental vehicles often sustain a lot of wear and tear, so they’re replaced frequently, which means that they are newer and have more advanced technology than older vehicles. This makes it much easier for fleet managers to monitor the health of the vehicles. Telematics (technology and computer programs) are used to determine fuel efficiency, engine performance, and maintenance needs, and can be helpful in budgeting for upcoming maintenance.

Purchase Option

Many fleet rental companies offer the opportunity to purchase their vehicles after a certain length of time. The fees you pay for renting it can be applied as a credit, and you can often purchase rental vehicles at a lower cost. Anything that helps save money is worth considering.

No matter the size of your business or how long you’ve been in operation, the cost of purchasing and maintaining a fleet is a tremendous burden. Renting your fleet can save you time, money, and headaches at every stage of the project.

John Morris

John Morris

He is a tech enthusiast who loves to be updated with the latest industry trends. As a writer, his favorite area of writing is Tech, Mobile apps, Business, and Reviews.

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