Different businesses sometimes require their employees to drive on company time. They are supposed to attend meetings or make deliveries of goods. These companies also think of owning their heavy-duty vehicles to avoid extra expenses. Owning your trucking fleet has its pros and cons.
Let’s dive a little deeper into what works for your particular company.
Pros Of Owning Your Truck Fleet:
We’ll first look into the advantages of a truck fleet ownership.
Specialized Vehicle Provision:
It is an appealing option to provide your company with a specialized truck or trailer when needed. Not only is this a more efficient transportation way, but you also get the ability to control liability. It is also a helpful way to save time and resources.
An important point to note here is that you should have an appropriate place to store the vehicles that you own. This place will give you the advantage of loading and unloading at your will. If you own a company with specific needs, owning your fleet of trucks will benefit you.
If your company’s drivers consist of delivery, maintenance and service vehicles, you have an immense opportunity to capitalize on-vehicle advertising. And company employees will likely have a positive driving attitude if their vehicle directly reflects on the company’s reputation.
Branded vehicles can create a positive brand image in the eyes of the customers. So, it is also essential to keep those vehicles in mint condition. If you were to provide a service in a worn-down vehicle, you would hurt the company’s image. Not only then, but you will also bring about suspicion on the brand’s spending habits.
Gain Easier Oversight:
Employers are always responsible for the safety and protection of their employees. Having employees drive company trucks and trailers, managing insurance and maintenance, upkeep, and other specific needs are challenging to work with a 3PL.
Drivers feel more relaxed in company vehicles which can lead to more errors. But a company-owned vehicle means you are current on insurance and maintenance. You get to keep a keen eye on employee errors and driving habits.
Cons In Owning A Fleet Of Trucks:
Let’s see some cons now.
Initially, you will have to make a significant investment if you’re looking into buying company trucks. Even if you get bulk-purchasing discounts, you will also have to add branding of these vehicles. You will get a logo of all company vehicles, so the initial costs will quickly add up.
There is also maintenance and asset depreciation as the vehicle becomes older. The driving habits and the utilization of the vehicles can mean more costs on maintenance and repair.
Many companies have two options when it comes to storage. They can allow employees to take the trucks home at the end of the day. Or they can park them in a company garage. This means getting additional vehicle storage. Ideally, it would help not park them in public areas. Having a designated parking space is essential for your company.
This designated parking will be secure and have security cameras. The central space means having more accessible access to the vehicles as well.
If your employees deliver different items, carry designated equipment and have specific needs on the road, you may have to retrofit your vehicles accordingly. You will have to invest extra in getting the interior and exterior done according to company needs.
Additionally, when the vehicles get damaged on the road, you will also have to pay for repairs.
Q- What is trucking fleet ownership?
Fleet ownership works like this: fleet owner leases a vehicle to his employee. This employee will then have the option to buy the said vehicle and start his operation.
Q- Are there mileage restrictions on company-owned trucks?
If you drive a company-owned vehicle, do not worry about a mileage restriction. But as an owner-operator, you need to be mindful that higher mileage can affect the resale value of your truck.
Whatever appeals to you or suits best to your company, you should make an informed decision on owning your fleet of trucks. Also, it is crucial that whether you’re driving a company vehicle or a private one, your driving habits are essential for your safety and the people on the road.