Cost savvy

Com­par­i­son study finds rent-to-own fi­nance most cost ef­fec­tive

Deals on Wheels - - Contents -

Com­par­i­son study finds rent-to-own fi­nance most cost ef­fec­tive

Acom­par­a­tive study by equip­ment fi­nance lender, GoGetta, has found that the weekly costs of its rent-to-own fund­ing so­lu­tion is up to half the cost of short-term truck hire.

Get­ting started and building a busi­ness in the truck­ing in­dus­try re­quires sig­nif­i­cant fi­nan­cial out­put for equip­ment.

And analysing the best fi­nance op­tions for in­di­vid­ual busi­nesses to get the equip­ment they need can be a daunt­ing task.

How­ever, a new whitepa­per re­leased by the spe­cial­ist equip­ment fi­nance lender has laid out the ad­van­tages and disad­van­tages of tra­di­tional fi­nance op­tions, hir­ing and GoGetta’s rent-to-own so­lu­tion.

While tra­di­tional fi­nanc­ing op­tions have their own ad­van­tages, this doesn’t suit ev­ery busi­ness be­cause of strict lend­ing cri­te­ria around bor­row­ers and equip­ment, as well as the rigid na­ture of loans.

If tra­di­tional fi­nanc­ing is not a vi­able op­tion, hir­ing equip­ment may seem like the next best so­lu­tion. It has lit­tle or no cap­i­tal out­lay, sig­nif­i­cant tax de­duc­tions and flex­i­ble op­tions week-to-week.

How­ever, hir­ing fees can be sig­nif­i­cantly more ex­pen­sive than reg­u­lar fi­nance re­pay­ments.

GoGetta is now of­fer­ing an­other op­tion to al­low busi­nesses to ac­quire the equip­ment they need with the flex­i­bil­ity to suit each in­di­vid­ual.

With a broader scope around the po­ten­tial of your busi­ness and fluid equip­ment cri­te­ria

(e.g. the age of the truck), GoGetta’s rent-toown fund­ing so­lu­tion (Rent.Grow.Own.) of­fers a 12-month agree­ment with more flex­i­bil­ity than a bank loan or fi­nance lease.

GoGetta buys the truck on your be­half and rents it to you. You make reg­u­lar rental pay­ments and have a num­ber of long-term op­tions.

At any point in the con­tract you can pur­chase the truck and take ad­van­tage of a gen­er­ous rental re­bate, or if the truck is no longer suitable, you can re­turn it to GoGetta with­out penalty.

Re­gard­less of the re­spec­tive ad­van­tages of rent­ing-to-own and hir­ing equip­ment, as with most busi­ness de­ci­sions, the over­rid­ing con­sid­er­a­tion is cost.

GoGetta’s new whitepa­per breaks down the costs of rent­ing-to-own and hir­ing trucks in four dif­fer­ent classes. Sourc­ing quotes from five truck hire com­pa­nies, in­clud­ing some of Aus­tralia’s big­gest providers, it com­pared the cost of hir­ing the re­spec­tive trucks with the cost of rent­ing-toown them through GoGetta.

For ex­am­ple, the whitepa­per found the cost to hire a heavy-duty truck on a weekly ba­sis will fall around $3,100, whereas GoGetta’s weekly rent cost for the same truck will be around $1,653, of­fer­ing a sav­ing of al­most $80,000 over a 12-month pe­riod. Based on the com­par­i­son, the weekly costs of rent­ing-to-own a truck are up to half that of the weekly costs of hir­ing a truck.

While the task of sourc­ing fi­nance may seem daunt­ing, it’s worth­while think­ing out­side the box to se­cure the best op­tion of your busi­ness. Not only could it po­ten­tially save you money, but you could own bet­ter equip­ment sooner, driv­ing your busi­ness for­ward.

Based on the com­par­i­son, the weekly costs of rent­ing-to-own a truck are up to half that of the weekly costs of hir­ing a truck

Left: Wayne Hep­burn, from Go Getta Equip­ment fund­ing, says the new white pa­per breaks down the cost of rent­ing-to-own and hir­ing trucks

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