Your budget capabilities will determine whether you look for a refuse vehicle for hire, or for sale. We delve into the different aspects to consider when looking to build your refuse vehicle fleet.
Here’s the scenario: your waste collection business has been consistently performing well and now you’re ready to level up and add another refuse vehicle to your fleet.
There are many different providers of refuse vehicles who offer different variations of refuse vehicles. Whichever company you choose, your decision will be determined by whether you want a refuse vehicle for hire, or for sale.
It’s a hugely important decision that should be taken seriously. For this reason, we’ve delved into 6 key factors to consider when deciding to look to buy or hire a refuse truck.
How Often Will You Use Your Refuse Vehicle?
You should conduct a thorough analysis of your operational needs. Consider the following factors;
- Volume of waste generated
- Collection schedules
- Any anticipated changes in demand.
If your need for refuse vehicles is sporadic or project-specific, a refuse vehicle for hire offers a cost-effective solution.
However, if waste management is a core aspect of your business and the demand is consistent throughout the year, a refuse vehicle for sale may be more economical in the long run.
What is your Financial Flexibility?
Make sure to evaluate your organisation’s financial position and cash flow. Assess the initial cost of purchasing a refuse vehicle and the total cost of ownership over its lifespan.
Factors that affect costs are:
- Depreciation
- Financing expenses
- Ongoing maintenance
When you hire a refuse vehicle, you can spread out the costs with fixed rental payments. This helps keep your money available for other uses, making it beneficial for businesses that have a fluctuating income or a smaller amount in their savings.
Alternatively, owning a refuse vehicle means you have more control over the vehicle, so you can customise it to fit the company’s needs.
Can you Cover the Maintenance Cost?
When adding a new refuse vehicle to your fleet, it’s important to think about maintenance costs.
If you’re buying a refuse vehicle, remember to budget for regular maintenance, repairs, and replacement parts, taking into account the vehicle’s age and condition.
On the other hand, if you’re hiring a refuse vehicle, your agreement with the provider usually covers maintenance services. This means less paperwork for you and helps avoid unexpected expenses.
What are your Long-Term Investment Goals?
Having made your decision of your company’s long-term strategic objectives, you can determine whether adding a refuse vehicle to your fleet is in line with your growth trajectory.
While hiring a refuse vehicle offers flexibility and immediate cost savings, buying a refuse vehicle allows you to build equity in tangible assets and exert greater control over your operations.
You should consider the expected lifespan of the refuse vehicle, its resale value, and the potential for technology advancements.
Will You Need to Customise Your Refuse Vehicle?
Having full control of the refuse vehicle will be vital if your business needs to make any alterations to the vehicle to suit your operational needs.
Buying the refuse vehicle gives you more control of your fleet management, enabling you to tailor the refuse vehicle for specific needs. You may also want to customise your refuse vehicles for branding purposes and operational protocols.
However, buying the refuse vehicle does mean more administrative responsibilities such as licensing, insurance, and compliance with regulatory standards.
In contrast, hiring a refuse vehicle offers convenience and simplicity, with rental companies taking on logistical tasks and providing standardised equipment.
You should consider the benefits between control or convenience and see which one matches your company’s long-term objectives.
How Adaptable are Your Long-Term Goals?
When choosing between hiring or buying a refuse vehicle, think about how your business might grow in the future and any possible changes in waste generation, population, or service demand.
Hiring your refuse vehicle will give you flexibility to change your fleet size and type as needed without long-term commitments.
However, when you buy your refuse vehicle, you have more control over it and the assets it brings. Just keep in mind that you’ll need to plan carefully for growth and potential changes in technology.
The Choice is Yours
Adding to your fleet is a big investment, so we hope considering the above factor helps make the process easier for your decision making team.
If you are looking to add to your fleet, you can take a look at our refuse vehicles for hire, or refuse vehicles for sale.
Trest can help find you the right refuse vehicle for your business, contact us today!
