Whether you are just starting out or already own a thriving business in construction, one of the largest overhead costs you’ll face is that of owning and maintaining a fleet. When you use a fleet rental company, though, not only can you save money, you can also save time and headaches.
If you own a business that involves getting manpower or materials from point A to point B, it’s likely you’ve already considered whether buying is the best option. No matter what type of fleet vehicles you need, from pickup trucks to flatbeds, going the route of fleet rental has its advantages. After all, you probably have enough to consider buying for your company.
Advantages of Renting VS Buying
In addition to the initial cost of purchasing company vehicles, using a fleet rental company can save you hundreds if not thousands of dollars a month. Depending on the number of vehicles you need for operation, you may not be able to secure enough financing to purchase vehicles outright. The other headache that comes with owning your fleet of vehicles is long-term maintenance and replacement.
The average cost of vehicle ownership for a sedan is roughly $10,000 a year. For one vehicle that probably doesn’t meet your company’s needs. A general breakdown includes
- $600 payment
- $100 insurance
- $150 fuel
- $110 maintenance
But what about when you need heavy-duty trucks or one-ton flatbeds? Let’s look at the breakdown for a truck, using a 2500 Dodge Ram as an example:
- $811 monthly payment
- $151 monthly insurance
- $960 monthly fuel (job site is on average an hour from employee’s residence)
- $450 oil change and fuel filter every 5,000 miles (that’s roughly every 5 weeks)
- $1,000 tire replacement every year
That’s over $2300 a month for ONE truck. Do you have the capital to finance and maintain 20 of them? When you rent your fleet, all you pay for is the maintenance and fuel.
Another benefit of fleet rentals is that they take care of the logistics. If you need a certain size vehicle for a large project, just call the company up and they’ll deliver it to where you need it. They’ll even pick it up when you’re done.
For businesses whose workers travel frequently, you likely need multiple vehicles and that need might fluctuate. Fleet rental services can generally accommodate large or small orders and understand that needs change. In line with cost savings, renting fleet vehicles eliminates the cost of having vehicles sit idle and unused. Why pay for something you’re not using?
Fleet rental services can also help you determine what size vehicles you need. They’ll ask questions right away and offer you a quote for trucks that best fit your business needs. They even provide flatbed trailers for heavy equipment. The cost of heavy equipment is steep enough, so why not alleviate that headache by renting the trailer to tow it?
Ease of Replacement
Part of owning a vehicle means that it needs regular maintenance and eventually, it will need to be replaced. When you own a construction business, there’s significant wear and tear on vehicles. Can you afford to replace your fleet as needed or would it make more sense to just call the fleet rental company and have a replacement delivered?
Another scenario you might find yourself in is that the truck you own is too small to get the job done. When you rent, you can call and have a bigger vehicle delivered. Talk about more cost savings! Imagine if you purchased 5 quarter-ton trucks only to find out that the equipment you’re hauling needs a three-quarter-ton towing vehicle. Chances are, you can’t afford to purchase replacements.
Great Assist for Fleet Management
One of the biggest advantages of using a fleet rental service is that it takes some of the weight off the fleet manager’s shoulders. Instead of worrying about how they will acquire necessary vehicles for upcoming projects, a fleet manager can contact the rental service and give them project information and they’ll do the rest.
Some newer fleet rental vehicles even come equipped with AI so fleet managers can still track things like maintenance needs and fuel usage. Vehicles with advanced technology can be pricey but companies can take advantage of these tools by renting instead.
No matter the type of construction business you own, the cost of managing a fleet is a tremendous burden on your company’s profits. Using a fleet rental company can save you thousands of dollars a year and might be the only way to get your business off the ground initially.