Businesses are expanding their horizons of growth, & the supply chain system plays an integral role in this. A seamlessly running supply chain is backed by a transportation system that includes rail, shipping & air freight. At some point, many businesses may need to transport goods or equipment for commercial purposes.
So, the next question that pops up here is how well one should buy or lease. Well, one of the most practical solutions would be commercial truck leasing. Today, you can find different companies offering commercial truck leasing services.
But contacting individual companies can be challenging & time-taking.
To overcome this time lag, you have companies like vHub. It gives you all the information on the capacity from drivers, carriers, trailer rental companies, & owners/operators.
All this eventually saves the time of shippers, brokers & 3PLs. The cost of renting a commercial truck can vary depending on several factors. Here we will be breaking down the expenses associated with commercial truck leasing. Thus helping you make an informed decision.
Factors Affecting the Cost of Renting a Commercial Truck
Type of Truck:
One of the first factors that impact the cost of renting a commercial truck is its type & capacity. For instance, renting a pickup truck will cost less than renting a larger box truck.
Rental Duration:
The lease period also impacts the cost of commercial truck’s. It is always advised to go ahead with hiring for a longer duration.
The rental value will be less than hiring a commercial truck for a shorter period.
For example:
If you need a truck for a day. The rental fee will be higher than if you rent it for a week or a month.
Seasonal Demand:
During the peak season, the cost of renting a commercial truck may go high. For example, during the holidays or the summer, the demand is high, & during this time, the cost of the lease may go high. However, making the booking in advance can get you the lease at a lesser price. You can make the booking between July & October because new models are introduced during this time of the season.
Location:
The rental company’s location can also affect the cost of renting a commercial truck. In general, rental companies in urban areas may charge more than those in rural areas.
Insurance:
When renting a commercial truck, you may need to purchase insurance coverage. The cost of insurance can vary depending on the coverage you choose. Some rental companies offer insurance coverage as part of the rental cost, while others may charge it separately.
Taxes and Fees:
Rental companies may also charge additional taxes and fees such as sales tax, environmental fee, or damage waiver fee. These additional fees can add up, and it’s essential to factor them into the rental cost.
Mileage Charges:
Some rental companies may also charge additional fees if you exceed a certain number of miles. Before signing the rental agreement, clarify the mileage limits with the rental company.
Cleaning Fee:
You may also be charged a cleaning fee if you return the truck in a dirty condition. It’s important to return the truck in the same condition you received it to avoid any additional charges
Types of Commercial Trucks
The cost of renting a commercial truck can vary depending on the abovementioned factors. However, here is a general breakdown of what you can expect to pay for renting different types of commercial trucks.
| Types of Trucks | Cost of Lease |
|---|---|
| Pickup Trucks | $50 to $150 per day |
| Cargo Vans | $75 to $200 per day |
| Â Box Trucks | $150 to $300 per day |
| Refrigerated Trucks | $250 to $500 per day |
| Flatbed Trucks | $200 to $400 per day |
The cost of renting varies based on the rental company, location, and duration of the rental.
Types of Cost Associated With Commercial Truck Leasing
Leasing a commercial truck involves several costs, including acquisition fees, depreciation, financing costs, insurance premiums, maintenance and repair fees, and payment method fees.
Acquisition Fees –
These are the charges from the leasing company that cover administrative expenses and insurance premiums. These fees are not collected if you purchase the truck at the end of the lease.
Depreciation Cost –
The value of a truck depreciates with time. The amount of depreciation will depend on the life expectancy of the truck and its usage. Commercial truck leasing companies offer lease calculators to estimate depreciation costs and propose monthly payments.
Financing Cost –
If a company borrows money from a bank or financial institution, the latter charges a certain amount in the form of interest. Combining the acquisition fee and financing cost into one monthly payment is a common practice.
Insurance Premiums-
These are necessary when leasing a commercial truck & can be a significant expense. Comparing insurance providers to find the best coverage for your needs is important.
Payment method –
This fee can arise if the leasing company requires automatic payments through your bank account or credit card. This is to ensure timely payments and streamline the transaction process.
Tips for Saving Money When Renting a Commercial Truck
Renting a commercial truck can be costly. However, knowing the right way and certain tips can help you save this money.
Here are a few tips that you can take into account when renting a commercial truck:
Shop Around:
It is always recommended to look for different options rather than settling down with the first one that you come across. Spend some time researching and comparing the price of the different rental companies.
Looks also for the promotional discounts & offers. Different third-party platforms give you a complete overview of the trailers and trucks available for lease, along with their features and capabilities. This will help you in making a more informed decision.
Rent for Longer Durations:
As we have mentioned above. Renting the trucks for a longer duration will reduce the lower cost per day rather than looking to lease a truck for a shorter duration.
Return the Truck on Time:
You must check the charges charged by the rental companies. Many a time, there are hidden charges of which the borrower is unaware.
Hence it is advised that you should first read the terms &conditions and policies of the supplier along with the late charges.
Most of the rental companies may charge additional fees in case you fail to return the truck on time. To save on this cost, adhering to the timeline is paramount.
Summary of Cost Associated With Commercial Truck
| Truck make and model | The make and model of the truck can significantly impact the leasing cost. Newer models with more advanced features typically have higher leasing costs |
| Â Term of lease | The length of the lease affects the monthly payment.
Longer leases usually have lower monthly payments & resulting in a higher overall cost. |
| Mileage allowance | Most leases come with a mileage allowance ranging from 10,000 to 25,000 miles per year. If you exceed the mileage limit.
you will be charged an additional fee, which can significantly increase the lease cost. |
| Down payment | A larger down payment can help lower the monthly payment & overall lease cost. |
| Â Insurance | Comprehensive insurance is typically required for commercial truck leases and can be expensive, depending on the level of coverage.
The cost of insurance can significantly impact the overall cost of the lease. |
| Â Acquisition fees | Leasing companies charge acquisition fees to cover administrative expenses and insurance premiums. The fee is waived if you purchase the truck at the end of your lease. |
| Depreciation fees | Depreciation is the loss of value or money from using the equipment over an extended period.
It can be a significant cost factor in commercial truck leasing, as the value of the lease decreases over time due to wear and tear. The specific amount of depreciation will depend on the life expectancy of the truck & how much it is used. |
| Financing costs | Commercial truck leasing companies use banks or other financial institutions to finance your lease, and they will charge you interest for this. You can combine financing costs with acquisition fees into a single monthly payment. |
| Â Payment method fee | Some leasing companies may charge a fee for the payment method used for monthly payments. They may require automatic payments through a bank account or credit card to make the transaction process easier. |
Wrapping it up !!!
The above discussion covers all the key aspects associated with commercial truck leasing. Whether you are willing to lease a semi-trailer.
Looking for semi-truck rental services and doing intense research before giving it a go is paramount. The points mentioned above will help you to strive through this process.
Interested in Semi Truck Rental? Connect with vHub today
We have a great platform where you can get all the information related to the availability of commercial trucks. We have various commercial trucks like the Chevrolet commercial trucks and semi-trailers from renowned brands available on the platform. With cutting-edge technology, vHub gives you all the information on commercial truck availability. Thus simplifying your search process. Commercial truck ownership getting a lot more challenging & costly to manage on everyday basis. For more Rent a Commercial Truck service with affordable contact vHub or call +1 866-849-0189.
