Buy or Lease Semi Trailers in Minnesota or North Dakota
The Pros and Cons of Owning vs. Renting Semi Trailers
Many successful trucking companies who need trailer transportation have a combination of leased and owned semi trailers in their fleet. While there are benefits to both renting and leasing, finding the right ratio of owning vs. leasing can be tricky. You may want some flexibility on the size of your fleet so your fleet can grow and contract with your business needs. But you also want the stability and benefits of owning your own trailers.
How you set up your fleet and know when and why to buy vs. rent depends on your business needs, goals, and cash flow. Here are some things to keep in mind as you make decisions about how to get the semi trailers you need for your business.
Buy Semi Trailers in Minneapolis, St. Paul, or Fargo, North Dakota
Pros to owning include:
- Potential tax benefits. Ownership may qualify you for tax breaks. Financing options may include negotiating terms with tax breaks, too.
- You don’t need to worry about availability of semi trucks when you own them.
- Being in charge of maintenance means you choose your mechanics and know what gets done, and when.
- You may have the option to purchase from your leasing vendor, rather than negotiating with a lender.
Lease Semi Trailers in Fargo, North Dakota or the Twin Cities, Minnesota
Pros to leasing:
- Leasing frees up capital you could use to grow your business.
- Leasing/renting offers access to extra equipment for busy times; just turn it in when business slows down.
- Maintenance is our responsibility, not yours. There is no need to keep parts, tires, and other maintenance items on hand. Negotiating semi trailer maintenance is not your responsibility. Leasing also increases uptime.
- If there is a significant wait time between ordering a trailer and receiving it, Citi-Cargo can fill that gap with rental equipment until your new trailer is built and arrives.
- We have flexible leasing terms that can be tailored to meet a your particular needs, even as your business expands or contracts.
- Emergency services are included to keep your freight moving.
- Leasing enables you to try the new technology and equipment in trailers without having to research those technologies and commit to ownership before really knowing if you want it.
- Handling taxes, regulatory and licenses is taken care of for you.
A good way to figure out how many trailers you should own vs. rent is to think about what your minimum basic needs are. Consider owning the fewest number of semi trailers your business needs, so you know you have the basics covered with your own fleet, but you won’t have trailers sitting around during slower months. Then fill in the gaps with leased trailers.
Track the seasonal fluctuations in business, and book those semi trailers several months in advance so you’re covered. And consider what your current goals are. If you’re a new company growing quickly, you might need to invest your capital in other ways at first. So lease all of your semi trailers for a while, and while you’re doing so, get an idea of your long-term needs so when you’re ready to buy, you know what you’re looking for.
At Citi-Cargo, we lease semi trailers with flexible terms, we’re accustomed to the various needs of trucking companies through the life of a business, and we are committed to excellence in customer service and maintenance of your equipment. You can also purchase semi trailers directly from us. Whether you need dry vans, reefers, or flat beds, we have a temporary or long-term solution available.
Whether you’re looking to buy or lease, consider Citi-Cargo for your semi trailer needs. Learn more about what we offer.