Should a business own or hire trucks and what should it consider

People or items may need to be transported by a business. Some businesses specialize in moving people or items and therefore need a reliable means of transport. Businesses have various options for transport means as they could either buy their own trucks or hire them. A business could also have its own trucks but hire drivers. Owning the drivers a business can hire the trucks. The choices determine the costs, quality of work done and the timeliness of the deliveries.

On owning a truck, a business incurs a high purchase cost, which small firms may not be able to afford. If the transportation of the items and people is not so frequent then the cost of running the trucks may be too high compared to the revenue and benefits obtained. All the repairs are paid for by the company owning the trucks. The business covers the insurance costs and the cost of other documentation involved in owning trucks. Any taxes involved in the purchase and sale of the trucks is also covered by the business. An advantage of owning the trucks is that a business can decide which routes to take and for how long the trucks can travel. When a business has its own trucks, it benefits from scheduling the transportation at any time without any delay or any kind of inconveniences.

Hiring trucks is actually advantageous to businesses. The hiring company caters for the purchase costs and the maintenance cost of the trucks on behalf of the company using the trucks. Provided a business pays the fees agreed, all other costs that their trucks incur will be covered for them. A comparison should be made between the fees paid and the purchase cost and maintenance cost for the trucks to make a decision on whether to hire or buy the trucks. The company hiring the trucks may have its business restricted due to the routes provided and the maximum mileage specified.

There are various factors that a business should consider when deciding whether to buy or hire trucks. For the hiring company to be in the business of hiring trucks it should hold a valid legal licence in its country of operations. Professional services tailored to the needs of the company hiring the trucks should be made available to it. Timely delivery is key by the hiring company to avoid extra costs and damaging the reputation of a business. The hiring company should have a good brand image because how the customer views the business is also affected by the image of the hiring company. A business should also look at the safety measures that the hiring company has put in place to minimize accidents and theft.

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