Different businesses have different needs and one of the most important is the transportation of raw material to the manufacturer and/or the finished goods to the various destinations. Various transportation vehicles, sometimes very special ones like vacuum tank trailers, are needed for the transportation of goods. Transportation equipment leasing allows your business to lease or “rent” out equipment that your company needs to get the job done.
Essentially, an equipment lease is a rental agreement in which one party (the lessor) maintains ownership of an asset and another party (the lessee) uses it in its business activities.
What kind of equipment can I lease?
A business can lease whatever transportation equipment their company needs in order to get the job done. Equipment leasing can be any kind of equipment from five axle dump trucks to a utility trailer, from one vehicle to a fleet of vehicles – there is no limit to what transportation equipment can be leased.
For example: aircraft, railroad cars, steamships can all be leased. A company can lease from one vehicle up to a fleet of vehicles or even used vehicles.
Why lease? Leasing transportation equipment allows a business to get transportation equipment immediately without spending large amounts of money to buy the equipment. Leasing transportation equipment frees up the company to have funds for other everyday running expenses such as wages for employees or other general overhead expenses.
Transportation industries continually strive to reduce the fixed costs supporting each vehicle. When the old or obsolete equipment needs to be upgraded, companies have to satisfy these demands by using the limited capital making leasing of transportation equipment necessary for the growth of the transportation business.