If you’re running a trucking business and need to buy new vocational vehicles, budgeting can be difficult. No matter how many options you have, you may not be able to afford the equipment you need. This is especially the case when other expenses are likely to spring up after you make a down payment, or if your cash flow hasn’t been consistent.
Fortunately, there is a plethora of ways you can save on trucking costs. The right financial plan will give you the leeway you need when your inventory changes.
Equipment Leasing
You can get what you need quickly and easily by leasing equipment.
- If you experience less busy seasons, you can plan ahead and halt your lease at certain times of the year.
- You can preserve your lines of credit and cash reserves, which should give you the liquidity you need for other tasks.
- Getting upgrades is easy at the end of a lease, and swapping equipment is often an option throughout the term.
- Equipment lease payments are often tax-deductible.
Equipment Financing
If leasing doesn’t appeal to you, you also might be able to take a loan to buy new equipment in a timely manner.
- You can plan your finances ahead of time instead of paying up front.
- New vehicles and equipment will be easier to purchase with the right payment plan.
- The interest you pay on the loan will likely be tax-deductible.
- Application is usually fast and easy for items that cost $200,000 or less.
- You can keep other lines of credit open for emergent business opportunities.
Fuel Efficiency
Many of your expenditures might come from wasting fuel when you transport materials.
- Setups such as FASS diesel fuel systems can help you save on fuel if you use diesel-powered trucks or equipment.
- You should mitigate idling if there’s a wait.
- Your vehicles should stay clean and free of excess mass.
- On the highway, cruise control can preserve your fuel.
- You should check your tires as much as possible to ensure their air pressure is right.
- A business gas card can help you manage your costs.
- You should have your engine and exhaust pipes inspected regularly.
- Driving the posted speed limit can keep you from wasting fuel.
It’s no secret that the trucking industry involves large and expensive equipment, but this shouldn’t intimidate you. When you stay on top of your capital, you can get the equipment you need quickly.
