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Pros and cons of hiring and owning trucks and their considerations A business may require to move the people or items from one place to another. For other businesses however, transporting cargo and people is their core business and therefore they need a reliable means of transport. A business could buy or own trucks for […]

Pros and cons of hiring and owning trucks and their considerations

A business may require to move the people or items from one place to another. For other businesses however, transporting cargo and people is their core business and therefore they need a reliable means of transport. A business could buy or own trucks for transport purposes. A business can hire drivers but own the trucks. It may own drivers but rent trucks. The costs, quality of work done and the timeliness of the deliveries Influenced by the decision on whether to hire or buy trucks.

Buying a truck may be too expensive for small firms. If the transportation of the items and people is not so frequent then the cost of running the trucks may be too high compared to the revenue and benefits obtained. The business incurs maintenance costs by themselves. The business covers the insurance costs and the cost of other documentation involved in owning trucks. Any taxes involved in the purchase and sale of the trucks is also covered by the business. Owning the trucks, a business has a say on which routes to be taken and the distance to be travelled by the trucks. An advantage of owning trucks is that a business can decide what time to transport its people and items from its own comfort.

There are benefits of hiring trucks to business owners. The hiring company caters for the purchase costs and the maintenance cost of the trucks on behalf of the company using the trucks. The hiring company normally caters for this provided the required fees are paid. A comparison should be made between the fees paid and the purchase cost and maintenance cost for the trucks to make a decision on whether to hire or buy the trucks. The hiring company may however have imposed limitations on the routes to be taken and the maximum mileage to be covered for each route.

The decision to buy or hire trucks is influenced by a number of factors. A valid legal licence to conduct operations should be held by the hiring company for a business to do business with it. The business should be able to access the professional services specific to its needs. It is very important that the hiring company makes its deliveries on time as this has an implication on cost and reputation with the end user. Customers consider the brand image from how deliveries are made and therefore this is key. It is expensive for a business to incur costs due to incidents during and on delivery and therefore the hiring company should have effective measures to ensure safety of the people or items being transported.

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