Saturday, April 4, 2009

Using carriers or buying or leasing business vehicles

Using carriers or buying or leasing business vehicles:There are three main ways of acquiring the use of vehicles. You can:buy your own vehicles outright,hire purchase or lease them,use a courier or distributor to move your goods.

The most cost-effective choice for your business depends on the amount and frequency of the goods you deliver. Don't buy your own vehicles if they will sit idle for most of the time, or be half empty when on the road - balance this with any tax breaks you may miss out on.

If you produce certain goods, eg very fragile ones, making sure that they reach your customer in one piece may be your priority, and it may be easier to do this using your own transport. Your goods may be insured when a carrier transports them, but this may not compensate for losing a customer if their goods arrive in pieces.


If your business places particular emphasis on customer service or prompt delivery, then owning your own vehicles may be advisable. If you want flexibility and control over when you transport goods, and want the ability to dispatch goods at a moment's notice, then owning your vehicles makes business sense.

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