Renting/Purchasing Commercial Vehicles for Your Business: Things to Note

A commercially owned vehicle is largely identified as vans, trucks, and tractors being used to carry goods or transport passengers for a business’s profit. To fall under this category, a vehicle must weigh more than 3.5 tons and should be able to haul one ton of cargo for business purposes. It’s titled or registered to one company and can mostly be driven on a regular license. However, trucks carrying extremely heavy items must only be driven by drivers who possess a commercial driver’s license or CDL. They aren’t meant for personal trips and are subjected to benefit-in-taxes in different states of the US.

Speaking of commercial vehicles, every business owner is presented with two options for bringing a commercial vehicle into use: (1) renting the vehicle seasonally for business and (2) buying the vehicle for permanently adding to their fleet. Here are things to know about renting and purchasing commercially owned vehicles to help you choose better:

Trucks and trailers carrying goods

Should You Rent a Commercial Vehicle for Your Business?

Ideally, you should rent if your need for a commercially owned vehicle will last no longer than six to 12 months on end or if your business operates seasonally with spikes only witnessed during peak months. Alternatively, you can judge your need to rent if you’re currently in the trial phase of equipment for your fleet.

Here’s diving deeper into things you should know about renting a commercial vehicle for your business in Springfield:

Who is the Ideal Candidate for Renting Commercial Vehicles?

Commercial vehicle rentals are quite different from personal rentals. They tend to be frequent and longer in terms of duration. This also requires the commercial rental to set up a customer account using a credit check which takes about 24 to 48 hours. Rentals offer an excellent method for bridging the gap between factories ordering that takes several months and staying in business in the meantime. They offer the most flexible methods for managing your equipment, and you can set it up for a day or even a year! However, if you need the vehicle for more than a year, leasing one may be more sustainable.

When is Renting a Good Option?

While every business is different, it’s seen that rentals are generally a great option for when you’re experiencing a spike in sales or operations. For this reason, rentals are incredibly popular among seasonal businesses. For example, if sales are slow during summer, you can stick to five in-house trucks; but when sales are elevated during the winters, add two rentals to your fleet for the next six months!

Alternatively, renting is great for those trial and error phases with a new type of equipment for your business. If you aren’t sure if the client will keep up with these requirements in the long run or if a recently launched service will prove fruitful for your company, renting is the way to go!

A commercially owned vehicle with a label printed towards the sides

Should You Buy a Commercial Vehicle for Your Business?

You should buy a commercial vehicle for your business if you’re the owner or operator of a business that thrives on trucking; a good measure is to have a fleet of less than 10 commercial cars dedicated to trucking. For a business that’s been running for years, your operations should include buying trucks if one has lasted for seven years. Last but not least, if your equipment travels 20,000 kilometers a year, you should sign up to buy a car!

Unloading and loading boxes off a van

Here’s diving deeper into things you should know about renting a commercial vehicle for your business in Springfield:

Who is the Ideal Candidate for Purchasing Commercial Vehicles?

Financing for a commercial vehicle is generally a good fit for the owner or operator of the business. If your business includes some form of transportation and yet includes a limited of vehicles, you shall benefit significantly from having purchased a commercial vehicle.

How Much Money Goes into Down Payment?

The standard down payment is 10 percent of the vehicle’s purchase price. Business owners generally have two options to finance their vehicle: (1) at a dealership or (2) at their bank. Discuss your financing requirements with both to understand which structure fits your needs best.

What is Commercial Auto Insurance?

Whether you rent or purchase a commercial vehicle, you can utilize commercial vehicle insurance to protect your car, van, or truck for conducting business. This insurance policy covers the usage and insurance amount that wouldn’t otherwise be covered under a personal auto insurance policy.

A company-owned car should only be used to run work errands

You need an auto insurance policy if your company-owned car is used solely for work, you transport goods or conduct business services in your vehicle, you haul equipment in the vehicle, or if you have multiple employees driving the business vehicle. A commercial vehicle policy offers coverage for bodily injury liability, property damage liability, combined single limit, collision insurance, comprehensive insurance, medical payments and personal injury protection, and uninsured motorist coverage.

Commercial vehicle insurance covers the employees of the company as well as the family members. However, it’s important for anyone driving a commercial vehicle frequently to be added to the commercial vehicle insurance policy at their earliest. While the policy covers all of the above, it doesn’t insure unattached equipment or tools since they aren’t a part of the automobile. If you wish to save your equipment and tools from damage and theft, it’s best to place them under business property insurance.

Multiple methods of payment for securing commercial vehicle insurance

Get Commercial Vehicles Insurance in Springfield

The top car insurance in Springfield, Western Mass Auto Insurance, has been operational since 2014 in Western Massachusetts. This team of auto insurance agents in Springfieldoffers full-service commercial vehicle insurance that covers the cost of a car crash by paying off medical expenses and bills for repairing damaged property. The car insurance agents provide coverage to a business vehicle in terms of liability, medical payments, physical damage, uninsured motorist, and non-owned coverage.

Request a free car insurance quote in Springfield from Western Mass Auto Insurance and get a discount for a current local and personal car insurance policy, having a DOT number, paying the amount in full, or paying installments automatically via your bank account.

The insurance provider guarantees free quotes, no obligation, and low down payments; they can also help you process your insurance and license plate in as little as 15 minutes! Bundling the commercial auto insurance with home insurance and apartment insurance or renters insurance accounts for 25 percent savings; hurry up before the offer ends!