September 26, 2018
Leasing for Tanker Truck Operations
By Michael Willey, PacLease Assistant General Manager, CTP
When it comes to leasing there are many benefits to consider, and when you are in a complex industry such as tank operations, the benefits of leasing can help drive critical business efficiencies.
As with most tank operations, there are additional costs associated with the tank and needed add-ons to operate the equipment. These items can drive the cost of ownership higher, taxing working capital on the business. This is one of the major benefits of leasing; the ability to maintain working capital for core business needs. Leasing does not require down payments or the use of bank credit lines, freeing up critical resources for the excess cost associated with tank operations. Taking advantage of the ability to pay tax, registration, and plates fees over the term also reduce upfront cost associated with ownership.
Leasing can help smooth the impact of high maintenance cost associated with tank operations by regulating the cost per mile on a monthly basis throughout the lease term. This will give the owner more line of sight into upkeep cost. In addition to having predictable maintenance cost, full service leasing can reduce overall maintenance and repair expense. Aggressive preventative maintenance programs, parts purchasing power, the most up to date technology, and trained technicians in the shop, allow the lessor to benefit from these pooled resources through a low cost per mile average. The trucks will remain reliable and in working condition through the term of the lease.
The ability to keep drivers in the newest equipment, equipped with the latest technologies and driver features, reduces time and cost associated with hiring new talent, many of whom leave for companies that have the latest equipment and support resources.
Leased trucks with good service agreements provide drivers with peace of mind that they will not lose valuable hours stranded with an inoperable vehicle. There is a nationwide network of dealers and service shops who are ready to get the truck back on the road as fast as possible. They’ll even arrange for a rental truck if necessary to keep downtime to a minimum because in the end the leasing company has a vested interest in keeping the truck well maintained and on the road.
Hidden cost and compliance can hinder a company’s operation. Leasing can help administer and remove many of these costs and hassles associated with the operations. Ownership expenses such as additional payroll, over the road repair cost, washing and rental vehicle expense can all be reduced or eliminated with a full service lease model. Additional support services like fuel tax management, fueling programs, toll management, driver training, and vehicle data logging will assist with regulatory compliance and relieve some of the administrative burden that comes with running a fleet of trucks, allow companies to focus on core competencies.
To learn more about the benefits of leasing please contact PacLease and a trained lease transportation professional will reach out to assist with your needs.
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