Why Full-service Truck Leasing is the Smart Choice for Private Fleets

In today's volatile business landscape, uncertainty looms large, casting doubt on the best paths forward for companies striving to maintain stability and foster growth. Amidst these challenges, private fleets face a particularly daunting task: managing their transportation needs efficiently while navigating unpredictable costs and technological advancements.

If transportation is not your core business but rather a means to get your product to its destination, then turning to a third party makes sense. That’s why many private fleets are turning to full-service leasing providers. The reality is that trucks are far more complicated with new technology, resulting in significantly higher costs to own and operate. Regardless of the future of alternative fuels, technology will continue to advance, specifically in the areas of artificial intelligence and machine learning. That requires constant training for technicians at a time when shortages of qualified candidates continue to plague the industry.

Why a full-service leasing provider makes sense for private fleets

Though there are myriad reasons companies may turn to full-service leasing, the benefits below are the most important:

Predictability in operational costs: It’s impossible for a company to create an accurate budget and forecast when fleet operating costs are unpredictable. Fuel prices, maintenance expenses, and rising insurance costs continue to fluctuate. Truck leasing offers fixed monthly lease payments, giving fleet managers the predictability necessary to budget effectively.

Unlocking working capital for growth: A company can’t grow if its working capital is tied up, especially with expenses that are not part of the core business. Purchasing trucks is a very expensive undertaking, tying up a significant amount of capital. Leasing requires lower upfront costs, and the money that is freed up can then be used for more strategic endeavors that can lead to company growth. That additional money can also be used to weather any unforeseen disruption.

Agility through scalability and flexibility: Private fleets, like all aspects of a business, need to be agile enough to adapt to changing market conditions. As demand shifts, fleets need to adjust capacity to meet those demands. That can mean a need for more capacity or less. Having trucks sit idle, or on the other side, being unable to make deliveries as demand spikes can cause incredible harm to a business. Leasing affords flexibility to scale the fleet up or down as demand and conditions change.

Access to cutting-edge technology: Today’s technology seems to be changing and advancing on a daily basis and at such a rapid pace, it can feel impossible to catch up, especially with the growth of AI. To invest heavily in technology that keeps changing is a big ask for fleets. Working with a truck leasing provider eliminates the risk. These organizations often offer access to the latest models with the most advanced features. This not only allows private fleets to be compliant with changing regulations; it also can reduce operating costs and enhance the fleet’s overall performance.

Lower maintenance costs: Fleets with a DIY mentality can find themselves in deep trouble when it comes to maintenance costs. That can be an issue when one considers the ongoing technician shortage. The Bureau of Labor Statistics estimates that the need for techs will increase by 4% through 2031. Whether it’s alternative fuel vehicles, AI, or other technologies, fleets will need techs that have the skill sets and knowledge necessary to care for those vehicles. That means ongoing training, as well as changing inventory to maintain the new trucks. This is a heavy burden, but many truck leasing organizations also offer dedicated contract maintenance as an option, meaning they take on the burden of making sure your fleet is ready to ride, safely and in full compliance.

Risk mitigation: Once a truck is purchased, a fleet manager or fleet owner is at the mercy of the market when it comes time to replace that vehicle. Private fleets that lease through a full-service truck leasing organization can transfer some of the residual value and depreciation risks to the leasing company. Used-truck sales fluctuate, so a fleet manager doesn’t want to be in the position of having to dispose of any of the truck inventory at a time when the used-truck value may drop.

Embracing the future with confidence

As businesses confront an increasingly uncertain future, the case for truck leasing grows stronger. By embracing leasing solutions, private fleet managers not only secure financial predictability and operational flexibility but also gain access to the latest technologies and expert maintenance services. These advantages enable leased fleets to not only survive but also thrive in an ever-evolving industry landscape.

Interested in learning more about full-service leasing?

Contact our team of experts at Rihm Leasing by emailing lease.rental@rihmfamilycompanies.com.

About the Author

Jane Clark is the senior vice president of operations for NationaLease. Prior to joining NationaLease, Jane served as the area vice president for Randstad, one of the nation’s largest recruitment agencies, and before that, she served in management posts with QPS Companies, Pro Staff, and Manpower, Inc.

The original article was published at FleetOwner.com.