If you need a trailer for your business or other needs, it is important to determine whether you need to own one or rent. Deciding between the two is not easy.
But then if you consider the duration in which you’ll need it and what you want to use it for, the decision will be easier to make.
Learn more about renting vs. buying a trailer to make the right choice. Here are some of the advantages and disadvantages of buying or renting a trailer that will guide you as you make your decision.
Advantages of Buying a Trailer
A trailer is a good business tool and owning one comes with a good share of benefits. Before considering where to buy a trailer, you can go through the benefits first to be sure about what to expect.
An Investment
Buying a trailer instead of renting is a big investment for your business. You put your money into a hard asset and a commodity that you can use as collateral when borrowing.
You can even rent it to others when not using and get some return on your investment. Purchasing a trailer can return you 10 times the money you used to buy it just by renting out. This is not like renting where you cannot do anything to recover the cash.
No Hidden Costs
Buying a trailer has no hidden costs attached to it. You will just pay the purchase amount, the insurance, and the registration fees.
Renting, on the other hand, comes with strict terms and conditions. You’re charged time and distance, which you can end up paying extra for if you don’t adhere. There are additional charges like late fees, drop-off, wear and tear deductibles, insurance, etc.
Convenience
With your own trailer, there is no room for inconveniences since it will be at your service whenever you need it. You can even leave it loaded between uses and save a lot of time.
You don’t have to contact the rental company every time you need the services of a trailer. You also save on time traveling to a rental agency to get one. Not to mention saving you from the disappointment you get when there is no trailer available at the time of need.
A Lot of Options at Your Disposal
Buying a trailer exposes you to a lot of options. You get the opportunity to explore the market and choose the one that suits you best. You can consider different purposes of trailers and even choose one that can serve dual purposes.
There are different types of trailers to choose from according to your needs and budget. There is the custom trailer, utility trailer, equipment trailer, dual-purpose trailer, car, enclosed trailer, or landscape trailer.
Disadvantages of Buying a Trailer
Considering the disadvantages is important when deciding whether to buy or rent a trailer. Here is a guide to help you make the right decision.
Cost
Not everyone can afford the cost needed to purchase a trailer. Buying one does not just involve the initial cost. You also need to consider the cost of ownership and other expenses that may come along the way.
To buy one, you need to consider the registration cost. You also need to pay extra fees for inspection and provide proof of insurance. There are also maintenance and upkeep costs. All these costs can weigh down your pockets.
Storage Space
If you don’t have a big garage, forget about buying a trailer. This is because you’ll have to spend extra cash to buy storage space. This is even more of a disadvantage if you’ll not be using once in a while because the storage may cost you more for day and night.
Benefits of Renting a Trailer
Even when you can afford to buy one, some situations call for renting. There are many reasons why other people will prefer to rent a million times instead of buying.
The Usage
You don’t have to buy a trailer, which will only lie idle in your yard. If you want a trailer for a short period or even a one-time use, renting becomes the best option. You won’t have to go through the buying hassle for something you won’t often be using.
Storage
If you have limited storage space for your trailer, you should consider renting instead of buying. A trailer will take a lot of your packing space. If you rent one, you won’t have to store it in your small space. You can pick it and return it to the company whenever it’s not in use.
Maintenance
If you prefer to rent a trailer, you will save yourself from constant maintenance costs. Maintaining these equipment trailers cost a lot of money, and this may strain your pockets. Think of the times it will have to stay idle because of serious mechanical problems.
Rental companies have the responsibility to keep their vehicles well maintained for business purposes. Your work will be only to pay the rental fees, which give you peace of mind. You are also sure of not getting any problems on the road because the companies keep their trailers in good condition.
Disadvantages of Renting a Trailer
There are still disadvantages of renting a trailer:
Inconvenience
Renting a trailer can be good until you need one urgently, and there is not a single one available. Rental trailers are not flexible enough and can sometimes mess you up when you need them the most. It is better to own yours, which you can use anytime.
Financial Issues
If you have to use a trailer often, renting may not be a good idea as far as finances are concerned. You will be wasting a lot of money renting, which is sometimes more costly than going through the buying process. Don’t forget the times you need to rent urgently, and you don’t have ready money.
Should You Buy or Rent a Trailer?
Buying a trailer will give you the flexibility and convenience you need. This, however, doesn’t mean that renting is a wrong idea. There are circumstances where renting becomes the best option, especially if you can’t afford the costs, or you need a trailer for one-time use.
Everything narrows down to your financial situation and business needs. Consider all the benefits of buying versus those of buying to guide your decision.
Don’t forget to go through our website for more business insights and ways to make good use of your finances.