When looking for a waste collection vehicle, one of the first decisions you need to make is “buy or hire”. Buying a refuse collection vehicle has some advantages, but there are many reasons why hiring a vehicle makes more sense.
Here we look at the benefits of waste vehicle hire, what you need to look out for when hiring a refuse collector, and when you should consider buying a vehicle instead.
Advantages of Refuse Collection Vehicle Hire
Affordable Monthly Payments
When you hire a refuse collection vehicle or a fleet of vehicles, you don’t need to worry about paying a considerable sum of money upfront. You benefit from a fixed schedule of monthly payments, which you can plan for and budget. Hiring makes economic sense when you know you will be using the vehicle for a limited period.
A new vehicle starts to depreciate as soon as you use it. Therefore, you will never recoup all the outlay you spent on the new truck. There is no depreciation issue when you hire a vehicle. You return it when you have finished using it and don’t need to worry about selling it for the highest possible price.
Unless you have all the money for a refuse collection vehicle upfront, you will need enough cash for a down-payment and will then need to secure finance for the rest of the purchase. If you only have a small down-payment or deposit, hiring makes better sense. Financing agreements are typically more expensive than buying outright or paying hire fees.
No Maintenance Costs
A vehicle needs repair and maintenance after you have used it. You are responsible for maintaining your own vehicle, which can be costly. If you hire, you skip this cost. If the wear and tear is not deemed to be excessive, your hire company will handle any maintenance issues.
Disadvantages of Refuse Collection Vehicle Hire
There are occasions when it is better to buy rather than hire a refuse collection vehicle. For example, if you want or need to modify the vehicle for any purpose then this is not typically allowed with a hired vehicle. The vehicle must be returned in the same condition as it was given to you. You also need to watch out for fees if you decide to return the vehicle earlier than the specified term.
What to Look For in a Hired Refuse Collection Vehicle
Check that the vehicle meets your requirements for specifications and budget. Look for a reliable and professional supplier with experience meeting the needs of the waste collection industry. Make sure that your vehicle is in excellent condition and that any reasonable maintenance is covered within the hire agreement. You may also want to hire from a company that also sells vehicles, in case you want to buy a truck once your hire agreement term has been completed. Shop around for deals and choose the highest specifications you can afford.