Bucket trucks are expensive types of equipment and most businesses are looking for alternative ways to acquire these vehicles that can save them from spending too much money. Renting is an available alternative to purchasing the equipment. It is best to have a guide to help a buyer be well-informed before making a decision between buying a bucket truck and renting one. This is a good measure to take to avoid any potential problem in the purchasing process.
Work Performed and Business Plans
Urgency should not affect the decision of whether to buy or rent a bucket truck for a business. Company owners should carefully consider the nature of their business and its plans for the future before making a purchasing decision.
For businesses that have multiple types of jobs which may require the long-term use of bucket trucks, buying a new or used one is the best option to be considered. Medium-sized businesses usually buy a used vehicle because of its lower price when compared to the price of a new one. Large businesses, such as those engaged in utility maintenance and other such services, can afford to invest in new equipment.
Both large and medium-sized businesses usually lease the equipment if they know they will only use the bucket trucks for a short period of time. If the vehicles will only be used for a few months, the decision to rent is more profitable than buying.
Tax Concerns
Business owners know that whether they decide to rent or buy, taxes should not be an issue in the purchasing process. Either decision that a business makes will allow them to take a tax deduction. When renting, that cost will be accounted as an operating expense, thus the total amount of the rental can offset the cost. When buying a new bucket truck, besides the cost of the vehicle, depreciation can be deducted from their taxes. Depending on the accounting method used by the business for depreciation, the cost of purchasing a new vehicle can be very advantageous.
Rent vs. Buy
A company can actually incur fewer expenses in the long run when acquiring a bucket truck as compared to renting. It cannot be overlooked that leasing will cost less when the equipment is only needed for a short period of time. With leasing, the company will not have to worry about insurance on the equipment. If any damages occur during the operation of the vehicle, the company will not have to pay for repairs. Obtaining a new bucket truck requires a larger cash expenditure as well as insurance to cover the equipment. There are both positive and negative sides to renting and buying, yet more weight should be put on the financial status of the company and the amount of time in which a return on investment is anticipated.
There are several factors that should be carefully considered before looking for the best bucket truck for a particular operation. A decision to buy or rent a bucket truck can be an easy choice as long as it is not done in haste. In the end, the choice should be based on which option is the best financial one for the company!
Christopher M. Hunter is an expert in commercial specialty trucks. Click here to find out more about Bucket Trucks for Sale in Canada.
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