Your business is thriving, your fleet is growing, and you are once-again faced with the difficult decision: Should I lease or own my commercial truck fleet? It is an important choice, and sometimes the gap between leasers and owners can feel like a canyon, but choosing to lease or own does not have to be an either-or decision.
Many fleets mix both options to maximize their operations and better serve their customers. Factors such as operation type, truck configurations, organizational preferences, routes, seasonality and financial considerations can influence fleet operators in their decision to lease or buy heavy-duty trucks. There are pros and cons to both approaches. Penske can help you decide what makes the most sense for your business.
Roughly two-thirds of fleet operators own their trucks. Owning equipment and other hard assets, such as warehouses or property, may be part of company culture or simply a financial preference. Additionally, some companies prefer to own because it gives physical assets and a sense of control over those assets.
There are, however, many hidden costs of ownership in addition to purchase cost such as:
Leasing allows many fleet operators to obtain equipment without the upfront costs and credit constraints of ownership. Leasing also reduces the need for a down payment and allows the fleet operator to expense the cost of the vehicle monthly rather than carry its liability on its balance sheet. That means more credit flexibility so the fleet operator can put capital elsewhere
Rapid changes in technology today mean vehicles become obsolete more quickly. With leasing, trade cycles are shorter, and fleet operators 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 fleet operators that want new safety-related technology.
Some businesses may prefer to outsource particular vehicle or technology types, like specialized equipment or trailers, to control their staffing costs. Full-service leases that include maintenance can benefit fleet operators that don’t have their own mechanics or shops. In addition, preferential rental terms in lease contracts can allow fleet operators to increase capacity for seasonal work or short-term contracts, and reduce it when demand decreases.
By choosing a full-service lease from Penske Truck Leasing, companies can leverage the economies of scale and gain access to the latest vehicle and maintenance technology and extensive technician training that Penske provides, at a lower overall cost.
With our comparative value analysis (CVA), Penske can evaluate the costs and benefits of leasing and owning based on a review of your transportation expenses. Our CVA can help you:
Uncover the hidden cost of ownership. We'll use your own financial data or industry benchmarks to compare your current overall cost of ownership with the predictable costs and savings of a Penske full-service lease.
Make an informed buying decision. Penske's CVA compares the cost of leasing with that of purchasing so you can make the best financial decision for your business.
Right size your fleet. If you hold onto extra trucks to replace vehicles sidelined by excessive maintenance needs or to accommodate peak delivery times, we can save you money. Penske offers programs that include free replacement units if a vehicle breaks down and discounted rentals for peak times.
Add value to your business. Our CVA will show you how to lower upfront capital investment, predict costs, minimize residual value risk and eliminate costly surprises.
Trust Penske to help you evaluate the merits of leasing and estimate its costs vs. owning.
Learn the ways leasing can help operators minimize transportation-related risks so they can focus on their core competencies.
Learn how outsourcing with Penske lowers the total costs to operate your vehicle over the vehicle's lifetime.
Penske Truck Leasing constantly reinvests in its facilities, tools, diagnostics and employees to be a trusted partner for your transportation needs.
Penske keeps you abreast of all federal, state and local regulations, and our processes and training help educate drivers on proper safety and compliance practices.
Penske's fuel management strategies can help you get the most from your fuel dollars.
Penske experts will ensure you get the right vehicle for the job – one that works with your budget and is sized for what you're hauling.
To maintain your image and increase brand awareness, we offer custom painting, decals, graphics and lettering so your vehicle matches the rest of your fleet.