Rent-to-own drives major savings


SPONSORED CONTENT: Comparison study finds rent-to-own finance most cost effective

 

A comparative 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.

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

With a broader scope around the potential of your business and fluid equipment criteria (e.g. the age of the truck), GoGetta’s rent-to-own 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-to-own 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.

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