Five reasons why trailer leasing is still attractive

The European economy is still growing, albeit at a slower pace, so continues to provide road hauliers with attractive business opportunities, mostly due to continued consumer adoption of online buying. Here are five reasons why you as a fleet manager should consider leasing your trucks and trailers rather than purchasing them outright.

  1. Trailer flexibility in uncertain times

In its spring 2018 economic report, the European Commission forecast that GDP growth in the euro area over 2018 will be 2.3%, marginally down on 2017’s 2.3% and drop to 2.0% in 2019. The corresponding figures for the UK are 1.5% for 2018, 1.8% for 2017 and down to 1.2% for 2019. The latter is no doubt influenced by uncertainty over Brexit.

Whether you are concerned about the state of the economy in which you operate, the fluctuations in demand for transport or the health of your business, you can obtain trailer flexibility and peace of mind through rental or leasing. These options enable you to add trailers to your fleets at busy times and return them in times of low demand, at short notice and without tying up capital in asset ownership.

  1. Better trailers for your money

Through leasing, fleet managers can often add vehicles to their fleet that are of a higher specification than those they could purchase themselves. This is thanks to the economies of scale that leasors achieve by purchasing in high volume from manufacturers and translating these cost savings into competitively priced leasing or rental deals for fleet operators.

  1. Newer trailers and technology

Rental and leasing agreements enable fleet managers to upgrade their fleets and switch more quickly to newer trucks kitted out with the most recent technology. VNA-Lease, the Dutch vehicle leasing association, notes that the average age of leased trucks over 3.5t tends to be significantly less than owned trucks. For example, in Belgium leased trucks are on average 3.2 years old compared to 7.9 years old for owned trucks. (source: LeaseEurope) The average age of a leased light commercial vehicle in the Netherlands is 31.5 months. (source: VNA-Lease)

  1. Outsource maintenance

As part of a rental or leasing contract, the leasor or rental company can provide the fleet manager with outsourced servicing and repairs for their trailer. With an outsourced maintenance agreement, the fleet manager avoids the overheads and management of the recruitment, training, and retention of specialised trailer mechanics and warehouse space to store spare parts.

  1. Trailer rental and leasing – popular and proven

Renting and leasing trailers and trucks are popular and long-proven practices for fleet managers looking to expand their businesses in a sensible way. As an illustration of the popularity of leasing, the 2017 market statistics published by VNA Lease, the Dutch vehicle leasing association, show that 19% of all 860,000 leased vehicles in the Netherlands are light commercial vehicles. In terms of longevity, TIP, currently celebrating its 50thanniversary, has provided its clients with rental and leased trailers for many years.

TIP leasing and rental

Trailer leasing and rental is our speciality. TIP offers a wide range of rental and leasing solutions and can advise on the different leasing regulations across Europe. With a transport fleet of over 60,000 units, TIP is one of Europe’s largest transport equipment leasing companies. It can also purchase each asset specifically for you.

TIP rental options

We offer trailers on a rental basis in all forms including flatbed, curtainsider, box trailers, tankers and reefers to fill short-term gaps in your fleet. This is an extremely useful option for fleet managers needing to fulfil a last-minute customer delivery request.

TIP trailer leasing options

For fleet managers looking for a flexible and cost-effective way to manage their fluctuating medium to long-term trailer fleet requirements, TIP provides several leasing options:

  • Operating lease– This is off-balance sheet leasing with flexible terms. Operating leases are particularly attractive for high-value assets such as trucks and trailers which are needed to fulfil a specific contract. Lease rates are based on the value of the asset over the period you require it. As a result, you can link lease rates directly to the revenue your asset generates.
  • Finance lease– A finance lease allows you to acquire an asset over time rather than paying for it upfront.  The lease rates are calculated over an agreed term.
  • Sale and leaseback– Under this form of leasing, we will buy your assets at a fair market price and lease these assets back to you for a fixed monthly fee, thereby freeing up your capital for other uses.
  • Additional value-added services available across all our leasing solutions– We can offer replacement vehicles during repairs, maintenance, roadside assistance, fleet and tyre management and telematics for your fleet. We remarket trucks and trailers that are no longer needed.

For more information about TIP trailer rental and leasing, please contact us using this form.

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