Choosing to lease or own doesn’t 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. Fleet operators with their own shops 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 purchase cost, these costs often include ongoing maintenance, repairs, and recruiting and maintaining staff. 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 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.
Penske can help evaluate the costs and benefits of each option with our comparative value analysis (CVA). Our CVA reviews your transportation expenses to uncover potential cost savings, while providing a benchmark to compare your operation to industry standards. Then, you can determine the best course of action for your circumstances.
If you’ve decided leasing is your next step, Penske Truck Leasing has resources in place to help you. A comparative value analysis can also demonstrate how a full-service lease can help you reduce expenses. So instead of spending on new truck purchases, you will have capital to reinvest in your business.
A CVA will:
|Trucks are spec'd based on actual usage by analyzing historical data on routes, capacity, drivers and freight.|
|Simplified financial planning with a single predictable monthly payment.|
|Track and monitor repair information, performance reporting, maintenance records and scheduling with one-click online access to your fleet.|
|Consistent fuel prices and automatic expenditure tracking at over 2,000 fueling locations nationwide.|
|Preventive maintenance scheduled four times a year, online status updates on unscheduled repairs.|
|Driver training with classes at customer headquarters, online and at leasing locations.|
|Government-mandated vehicle assessments performed and reported automatically.|
|Body maintenance and repairs available nationwide with fast, warrantied work.|
|Flexibility for growth so businesses can make sure their increased capacity needs will continue.|
|Disposal of old vehicles without wasting time, money or energy.|
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.