As a business owner, it’s likely your aim to have your Melbourne business make a profit. If you’re looking for a way to cut costs, then you should weigh the pros and cons of renting and buying a trailer if this is a piece of equipment you need. In this article, we will look at the benefits of each so you can make an informed decision.
Start by looking for the best vendors for buying or trailer hire Melbourne has, so you know you’ll get quality products. The right decision requires insight into various aspects of these transactions, so use this as your checklist.
The Benefits of Owning a Trailer
If you are in the position to purchase a trailer for your business, there are many benefits of owning one. It will always be available when you need it even on very short notice. Other benefits include:
- Acts as a capital investment: Once you purchase a trailer it becomes an asset for your business. This can be added to your stock portfolio. If you run into money problems, then you can sell it to help with cashflow.
- A unique kind of asset: A trailer is a valuable commodity that can be used to make money for your business. You can also use it as collateral to borrow money to grow your business in the future.
- No hidden costs involved: Renting a trailer means you could be subjected to a contract and that often involves hidden costs. If you buy one, you will know exactly how much you are spending and won’t get unforeseen expenses related to the transaction.
- Plan on your time: Imagine you need a trailer for an important job, but all the places that rent trailers are having a shortage and there is nothing available! That would mean having to reschedule or possibly losing the work entirely. If you own the trailer, it will always be available so this would never be a problem.
- Flexibility: If you own it, it’s yours to do with as you please. You can make additional money by renting it out when you don’t need it or use it to help a friend move house.
Renting or buying will ultimately come down to how much you will use the trailer. If you’re only going to use it once in a while and the rest of the time it will be gathering dust, it won’t end up being a wise investment.
The Benefits of Renting a Trailer
If you only need to use a trailer occasionally, then renting one may be the better option for your business. Other benefits of renting a trailer include:
- How much you will use it: If you only need the trailer once-off or once a month then going through the entire process of buying and financing one may not be worth it.
- Save money: Buying a trailer is expensive, especially when you consider all the hidden costs such as licensing, registration and insurance fees.
- No need to store it on site:Renting a trailer will prevent storage issues. Many businesses rent trailers because they don’t have the space and security features to safely store one.
- Maintenance: Upkeep on a trailer can be expensive. When you rent one, it becomes a non-issue as this will be the responsibility of the rental agency. If anything goes wrong with the trailer, most agencies will replace it so you can carry on with your tasks.
The Bigger Picture
Now that you know the benefits of each option, you should be able to weigh the benefits and disadvantages of each and decide which option would suit your situation better.
Also check your budget. Does it make financial sense to purchase, or is renting the best option for your bank balance? Don’t forget to add expenses such as maintenance and permit fees to your equation. Remember that the trailer will depreciate in value as it ages and any problems that you encounter will be for your own account.
Only you can make the correct decision for your business.
Safety Checks Before Your Journey
Before you hitch the trailer to your car you need to do a safety check on the tyres. Inspect the trailer’s wheels for any punctures and make certain they have the correct air pressure. Don’t forget to check the spare tyre. You may need it in an emergency.
Do a breaking test on both the trailer and your vehicle and make sure that the lights are working on both. Check the suspension. Lastly don’t forget to check the lights.
There are benefits and drawbacks to both options. You need to weigh your options and decide which is best for your business. If you intend to use your trailer every day, then rather invest in purchasing your own. If not, then the luxury of renting one is the investment your company needs.