Suppose U Drive was established in 1936 and ever since then, has been a solution to the business community in South California. The main lines of business they expose are truck rentals, truck leasing, truck maintenance and finally truck sales in Los Angeles and with two fully operational branches in Glendale and Norwalk, California. Trucks are available for both rental and leasing. The difference is that the rental of trucks could be a single delivery while leasing goes for a longer period of time.
Commercial Truck Rentals
There are times when business trends change and in this case, it changes upwards. For businesses that deal with transportation they are at times at the peak and do not have enough trucks to make their deliveries. In such cases, they will opt for rental trucks to ensure they carry out their businesses efficiently. Companies like the Suppose U Drive have sufficient trucks, that they offer on a rental basis and one can hire, carry out your business without a hitch.
Another occasion where one would consider hiring trucks is when their own truck breaks down. This is a normal and almost regular occurrence in the transportation industry. When such occurs, renting trucks is usually a worthwhile solution.
Some business concerns are engaged in seasonal business or deliveries that are there for season only. Such businesses will present a situation where it is prudent for the business to invest in capital goods like trucks. The money invested would be idle for a long period of time. If this is the case, using rental trucks would be a wise option. The money that would have been invested in purchasing the trucks will only lie idle for a long time, can be used as a working capital.
Transportation needs for business concerns differ from one business to another and there is no fixed rule on how to go about the solutions for a particular situation. Based on the benefits of leasing over those of owning trucks, one is able to make a decision on how to go about a particular situation. Some of the benefits are here below:
Leasing free capital – if you lease trucks a good amount of your working capital will be left free for investing elsewhere.
Staffing and personnel issues – when you own trucks you will need personnel to manage and that means more recurring expenses in their emoluments. This need does not arise when leased trucks are used.
Accurate budget projection – if you lease trucks, you can always do an accurate budget estimate as unforeseen expenses on repairs of trucks, do not arise.
Administrative costs – when you lease trucks you avoid administrative expenses like those on repairs, licenses and permits. These are taken care of by the leaser.
Other benefits are those relating government monitoring expenses, which are increasingly noticeable in the recent past, and the tax implication on trucks as a depreciation policy takes effect.
About the Author:
Suppose U Drive founded in 1936, was the creation of the pioneering spirit of Edwin E. Johnston & his wife Mildred, when they personally transported three Dodge trucks from Detroit to Los Angeles to start a truck rental and truck leasing company. They are now a well renowned name in commercial truck rentals Los Angeles and diesel box truck rental Glendale.