Whether you’re looking for a tarmac hotbox or a 4×4 truck, you are faced with a question: do I hire a vehicle or get it on a lease? It can be tricky to answer, particularly if your budgets are a little inconclusive.
What Variables Should You Consider?
There are several different variables to consider if you’re considering whether or not to purchase or hire a HGV. To help you work out whether or not hiring or purchasing is for you and your organisation, ND Brown has put this short article together.
Does Your Use Warrant a Purchase?
The first consideration you should be asking yourself is whether or not your organisation will be using the industrial vehicle often enough to warrant the purchase.
If it’s the case that your company will be using the vehicle as part of their day-to-day operations, purchasing the vehicle outright may be a better option than renting it. Alternatively, if your business will only occasionally use the vehicle, hiring the vehicle may be the better option.
Would Owning The Asset Help or Hinder Your Organisation?
The second question you should ask yourself is whether or not you want to own the asset.
There are two considerations when asking yourself this question. The first of these is to do with branding. Owning an HGV and being able to apply your branding is another opportunity to market your services to people, even passively.
The second consideration is the cost of the purchase. Generally speaking, advertising is never a bad idea – no matter what time of year or what the financial situation is – and it’s likely that you will be able to recoup the costs of your purchase by bringing in new customers. However, it could be some time before you notice the tangible benefits of this marketing.
As a result, it’s fair to say that larger companies – those that can absorb the upfront costs – are better suited to asset purchase than smaller ones. At the same time, smaller companies may benefit more from the advertising possibilities that come with being able to apply company branding.
Ultimately, only you can decide where your organisation lies on the scale between large and small, and whether it can absorb upfront costs or not.
How Much Can You Afford Right Now?
As previously inferred, the other question you need to ask yourself is whether or not your organisation can absorb the costs of an upfront purchase.
HGVs cost thousands of pounds – far more than a car – with even a 10% deposit in the range of £2,000 – £7,000. That’s not counting monthly payments, either. In contrast, vehicle hire normally costs much less and the time in which you are paying those costs is much shorter.
However, with purchase comes its benefits. Owning an asset increases the value of your organisation, and purchasing an asset demonstrates that your organisation is experiencing positive growth.
Both of these are important signs which you may wish to show if you’re thinking of selling your organisation eventually or if you’re looking to go public in the future.
What Are The Advantages of Owning vs Hiring an Industrial Vehicle?
- You can apply your branding to the vehicle and use it as part of your marketing strategy
- You can modify it to your specifications
- Owning an industrial vehicle increases the value of your company
- You don’t have to cover the costs of maintenance or insurance over long periods.
- No maintenance costs.
- You only pay for the time you use.
What Are The Disadvantages of Owning vs Hiring an Industrial Vehicle?
- The cost of purchasing an industrial vehicle can be considerable
- Maintenance costs over time can be considerable, especially as the vehicle enters its end of operational life
- Hiring a vehicle means that you cannot apply your branding, meaning that you do not receive any marketing benefit
- You cannot modify your hire vehicle in any way
- Hiring does not increase the value of your organisation
HGV Hire From N.D Brown
Ultimately, the decision whether to hire or purchase a vehicle is for you and your business manager to make.
However, whether you’re looking to hire or purchase an industrial vehicle, ND Brown has a wide variety of vehicles for your consideration.
Our purchasable vehicles include a DAF 18 Tonne Hot Box, a DAF CF 26 Tonne Hot Box, and a DAF CF.
Alternatively, if you’re looking to hire, we have a range of vehicles that will suit your needs. Whether you’re looking for HGV, 4×4 truck, hotbox, or grab hire in Manchester, Birmingham or London, you’ll find what you’re looking for at ND Brown. We offer both long-term and short-term hire, giving you more flexibility than any other commercial vehicle hire company in the UK.
For more information, get in touch with ND Brown today.
About ND Brown
ND Brown Ltd is a specialist independent truck rental and sales company of over 40 years’ standing. Owned and operated by the same dedicated management team since its inception, ND Brown’s efforts are focused on supplying the utility, civil engineering, municipal and highway maintenance industries with high-quality modern HGV vehicles for both short and long-term self-drive hire.
From our sales division, we also sell a wide, but specialised range of new and used commercial vehicles.
Please call us on 01902 791991 or email us on email@example.com