Buying new trailers was very profitable until a few years ago. The investment paid for itself in no time. How is it now?
The TSL industry has nevertheless been hit hard by the coronavirus. In early March and April 2020, when all other industries were downsizing, cutting costs, moving jobs home – transportation was still operating. Truck drivers were the only workers who could enter and exit many countries across Europe, even Italy when the situation there was extremely dire.
Unfortunately, the possibility of entry or exit does not translate into the number of orders. There were far fewer of those because many industries simply closed down. A hard lockdown was introduced by several European governments. The strongest losers were entrepreneurs who invested in the TSL industry. But that is not all, owners of transport companies, who want to develop their business, buying trailers, could not count on the return of investment within a few months, which was possible a few years ago.
This question is quite hard to answer. On the one hand, if the continuity of orders in your business has been maintained, there is no contraindication to investing in trailers. On the other hand, what if you can’t be completely sure about the next orders from contractors?
Then you take a big risk by buying new semi-trailers, especially with cash or bank transfer. After all, no one is sure of tomorrow, even though the prospect of vaccinating Europe’s population has calmed the situation somewhat. Unfortunately, it will take not months but years to achieve social immunity. It is likely that for a long time to come we will continue to hear reports of deaths and illnesses every day. Consequently, certain restrictions will stay with us for a long time.
Is there a way out of this for you as a transport business owner? Of course: instead of buying trailers, lease them. This is a more cost-effective way to acquire equipment
This is nothing more than a form of civil law contract. You will find in it, among other things:
There is also often a clause that sets contractual fines. If the trailer is damaged or not returned in a timely manner, you will face a penalty. So why is leasing the right solution for you and your business?
First and foremost, leasing cuts down on business costs. What’s more, when you buy one type of trailer, you’re kind of stuck. You may find that you need another type after a while, and then what? Another purchase and trying to sell the previous one?
You won’t have these problems when you choose leasing, especially since you’ll be referred to a team of specialists who will match the right trailer type to your business. Of course, you can also get advice yourself. Leasing simply doesn’t limit you, you don’t lose a large sum of money at a moment’s notice, the semi-trailer works on hire purchase, and you still profit from it. According to many, this is the perfect solution for smaller as well as larger transport companies.
In uncertain times, buying a semi-trailer can involve a lot of risk. So try betting on leasing, you won’t lose assets, and the trailer will earn for itself. In very uncertain coronavirus times, this may be the best solution.