Buy or rent a truck?

A guide to help you make the right decision for your business
A hand handing over keys to another hand

What is best for you?

Many companies sometimes face the question of whether to buy or rent a truck. There are, of course, advantages and disadvantages of both choices, which is why it can be difficult to choose. It could be inviting to buy the truck when the capital exists and the feeling of not having to pay interest is always attractive. But have you wondered if that money cannot be invested in anything else that gives more return? If so, what are the advantages of renting the truck?

Below we give a general picture of when it is suitable for a business to rent or buy one or several trucks. We also explain the economic and operational differences in long-term rent and short-term rent a truck park and when one gives reduced downtime and increased productivity at employees.

Benefits with buying

Close up on Toyota trucks

Buying the truck for ownership

Buying a truck can feel right if the money exists and a new (or used) truck is needed for the business. Generally speaking, there are of course better things to invest in because a truck, just like a passenger car, directly loses value. But if the company's policy is that you should own all the machines and trucks, you should of course do so. A self-owned truck will of course be an asset on the balance sheet and you can do as you please with it without being worried about what those who own the truck should say when the lease expires.

However, be aware that all modifications that take place must take place within the framework of the CE marking. Always allow an expert to make the changes you need. Also make sure to have a service contract on the truck, preferably with regular service year round to reduce the risk of a breakdown. Ask yourself how long you can be without the truck if something should happen.

Let look at the pro and cons of buying

+ You own the truck and can do whatever you want within the framework of the CE marking
+ It is an asset on the balance sheet

- You have to make sure that the truck lives up to the requirements that exist
- You are responsible for maintenance and repair
- An investment that binds capital
- This makes your truck fleet less adaptable
- The truck is rapidly decreasing in value
- You must take into account unexpected costs such as the hire of spare trucks as well
repair in case of major damage.
- Must sell or scrap the truck when it is not
longer needed

Why long term rental

Rental trucks waiting to be shipped

Long term rental with service included

Most truck companies offer short-term rental and long-term rent. Long-term rent is used by many
instead of buying the truck. In this way, you avoid the high initial cost and often receive service,
spare parts and technology time included.
If you rent the truck, you can invest the capital that had been spent on buying the truck in something
other things that can develop the capital for your business. If there are also low interest rates, there is little
reason to tie capital in a truck that quickly drops in value. However, be careful that you rent
from are authorized and the truck is checked.

When will you rent long-term?

  • For specific projects
  • In case of planned changes in production
  • When you want to create flexibility in the permanent truck park
  • When you want a fixed monthly cost

When should you choose to short term rent?

When to short term rent

Short term rental under high seasons

Long-term rent has many advantages but that short-term rent can also be a good solution in some situations, e.g. during peak seasons because it allows you to reduce costs below the off season when you are not in need of as many trucks. You will thus have to have trucks standing not used. It can be during the holidays when the consumer trade goes up and down warehousing needs to go faster. Short-term rent is also a good solution when a truck breaks and you quickly need a new or when to move or reorganize when the trucks will only be used for a short period. Watch out for short-term rent for a long period as the price is often high.

When is it suitable for short-term rent?

  • When you need a truck for a short limited period
  • When there is a seasonal stop in your business 
  • When you have high season in your business
  • In case of uncertainty about the need will remain
  • When you need extra resources
  • If urgent needs