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WHY RENTING IS BETTER THAN OWNING
- Purchasing a company asset like a new truck is expensive, and involves additional costs that are required in order to prepare it for usage.
- Trucks are purchased in order to perform particular tasks. Therefore it is vital that the truck has the capability to perform the required tasks. Using the wrong truck can cause inefficient and ineffective work.
- Depreciation and obsolescence are areas of concern when owning a truck. As new models are produced by manufacturers, owners have trouble in keeping pace with changes in technology and transport. Renting does not allow for this problem to occur.
- The process of purchasing a truck is time consuming. This can take up to months at a time. Renting allows for ready access to transport needed for the operation of business logistics immediately.
- Renting ensures that the truck that is in usage is in accordance with current laws and legislation.
- With a variety of truck makes and models available, a range of trucks can be rented according to the needs and criteria of the work as it changes over time.
- Renting allows for maximisation of capital. Capital expenditure can be more productively used towards core business activities and other investment opportunities.
- Disposal costs can be avoided when renting. These costs include repairs and advertising, which are required for the truck to be resold.
- Owning a truck creates additional liabilities for businesses, consequently decreasing the capability to borrow. By renting, borrowing capabilities are increased as it is not seen as a liability of the business.
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