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Should a business own or hire trucks and what should it consider

Once in a while a business may need to transport cargo or people from one place to another. Some businesses specialize in moving people or items and therefore need a reliable means of transport. Businesses have various options for transport means as they could either buy their own trucks or hire them. A business could also have its own trucks but hire drivers. Owning the drivers a business can hire the trucks. The costs, quality of work done and the timeliness of the deliveries Influenced by the decision on whether to hire or buy trucks.

The purchase cost of a new truck is too high for small businesses to afford. In addition to that, the people or the items being transported are not transported often, and therefore the cost of running the trucks is quite high compared to the revenue generated or the benefits enjoyed. The maintenance costs are also covered by the business. 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. On the better side though, a business has the freedom to decide the routes to be taken and details such as maximum mileage per trip. An advantage of owning trucks is that a business can decide what time to transport its people and items from its own comfort.

Businesses may also derive some advantages from hiring trucks. Businesses are able to save the money that could have been used to purchase and maintain the trucks. All costs of running the trucks are transferred to the hiring company. 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. Strict rules may be imposed on the maximum distance the specific routes to be used by companies renting the trucks which is a disadvantage.

There are various factors that a business should consider when deciding whether to buy or hire trucks. 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. The hiring company should have a good brand image because how the customer views the business is also affected by the image of the hiring company. 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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