Should you Buy or Rent a Trailer
We often come across potential customers that are unsure about whether they should buy or rent a trailer. Honestly speaking, there are plenty of reasons to opt for either option. However, the decision depends entirely on your specific requirements. Some people may consider acquiring a trailer to be a capital venture that will provide a return on investment in the future. On the contrary, for some others, it may just be a short-term purpose without any serious thoughts of recovery. Therefore, it is important for the individual to analyse his or her specific situation and make an informed decision.
The best alternative here is to weigh the overall cost of ownership against the option of renting, and deciding which one is the better investment option.
Types of Trailers: Before deciding between renting and buying, the first consideration should be to figure out the type of trailer you require. With many different categories available, you have plenty to choose from.
- Utility trailers: Suitable for small jobs such as hauling yard waste or renovation supplies.
- Enclosed trailers: Mostly used for construction tools or vehicles that require security
- Car trailers: Used for the transportation of the vehicles
- Equipment trailers: Used to pull mini-excavators or skid steers or accessories
- Landscape trailers: Used for heavy duty hauling with dumping capability
Your first step is to decide what type of a trailer will serve your purpose the best. Once this is done, pick the size of the trailer you want to buy or rent. As a thumb rule, it is always better to opt for a larger trailer. Mentioned below are a few sizing considerations for both buying and renting.
- Load weight: This includes the net trailer weight (the weight of the empty trailer) and the gross weight, which represents the maximum capacity of the trailer.
- Hitch compatibility: Different trailers come with different hitches and you must make sure that the trailer can be connected to your vehicle.
- Pulling power:This represents the required power and strength of the vehicle in order to pull the trailer.
After evaluating these points, it is time to carry out a realistic assessment of the budget and understand the ownership benefits compared to a short-term rent.
Benefits of Ownership:
- Capital Investment: By purchasing a trailer, you put your money into a hard asset. This is a tangible commodity that you own as a business investment or personal asset.
- Return on Investment: Once you have purchased a trailer, you can start expecting a return on your investment. This return may come from using the trailer as a business tool for making money.
- No Hidden Costs: While using a rented trailer, there may be several fine prints in the agreement. You must be extremely cautious about hidden expenses such as late fees, drop-off fees, wear and tear charges, additional insurance charges, etc. Owning a trailer relieves you from worrying about these hidden charges.
- Availability: Contacting a rental company to secure a trailer can sometimes be a frustrating process, particularly at the time of an emergency. Having a trailer of your own is great advantage because it is always available for you.
- Taxability: Once you purchase a trailer, it is your business asset. On the other hand, a rented trailer is nothing more than a one-time business expense. Depending on where you are, some tax benefits may be available for using your own trailer for business.
- Flexibility: With your own trailer, you are not bound by any terms and conditions whatsoever. You have the flexibility to loan or sub-let the trailer, convert its configuration, or sell it.
Benefits of Renting:
Though owning a trailer may be the right call for some people, there are times when it makes more sense to rent a trailer. Mentioned below are some advantages of renting a trailer.
- Usage Duration: Renting is undoubtedly the better option if you need the trailer for a one-time event or a short duration.
- Finance: In case you are going through some financial issues, renting provides you an excellent option.
- Storage: Trailers require a significant storage space and this can be an issue in certain locations. Renting a trailer will solve this problem for you.
- Maintenance: Maintenance is one of the challenges involved in owning a trailer. However, using a rented trailer relieves you from this responsibility because most of the rental companies have a well maintained fleet of trailers.
We hope this discussion will help you decide whether you should buy or rent a trailer for your project. You can also contact our experts to discuss your requirements. At K and G Machinery, we have a wide range of trailers and other heavy machineries available for sale as well as rent. Please contact us to opt for the option that suits all your requirements.