Purchasing a vacuum truck requires a large initial capital expenditure. Even when purchasing this type of vehicle with financing, a considerable down payment is still necessary. Thankfully, this piece of equipment can always be rented or leased. While nothing compares to owning a new one, there are many advantages that come with leasing that make it an acceptable option. Below are the top reasons why leasing may be the best choice.
Avoids Down Payment and Monthly Payments - One of the biggest benefits of leasing this equipment is that it does not require any painstaking applications for financing, large down payments, or costly monthly payments. This is good news for people who are just starting a business that requires the use of a vacuum truck but do not have the financial capability to purchase or finance this type of equipment. Through rentals, a new business can be started without incurring such a large debt.
Frees Capital - Because a new business does not have to spend so much money at the beginning of the company, there is more flexibility with finances that can be diverted to apply towards other important aspects of a new business.
Eliminates Asset Depreciation - Assets, particularly vehicles such as vacuum trucks, depreciate over time. Depreciation is the reduction of the value of property. A vehicle that was originally priced at $100,000 will no longer have the same value in three to five years.
Non-Taxable - Leased assets are non-taxable, so renters have one less asset to worry about when paying business taxes.
Can Acquire Latest Technology - While purchasing this equipment is always the better option if it is possible, there is always the factor that the vehicle will become obsolete. The technology that is used on these vehicles evolves quickly and purchasing locks the owner into the technology that was available at the time of the purchase. Leasing gives renters the freedom to change trucks every time new technology becomes available to the extend that is allowed in the lease terms.
Flexible on Demand - The demand for vacuuming jobs varies during the year. Through leasing, operators can adjust the number of units rented to the demand of each job. By being flexible, operating costs can be adjusted according to the jobs that are available, thus eliminating any unnecessary expenses and increasing profits.
Eliminates Costly Maintenance - By renting, operators can choose whether to perform their own maintenance on the vehicle or have the rental company conduct the maintenance themselves for an additional cost. If they choose the latter, scheduled maintenance concerns are eliminated because the company providing the vehicle will shoulder the cost and responsibility for this function.
Eliminates Breakdown Lost Time - One of the problems with owning this equipment is downtime due to breakdowns. This problem does not exist with rental equipment. If a breakdown occurs, a replacement is requested so the job can continue with very little downtime.
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