Making smart financial decisions is crucial to the success of any business. Even during booming economic times, competitive companies continually look for cost-saving opportunities. If you are in a business that maintains a fleet of pick up truck rentals, here are some ways to reduce expenses and increase your profits.
1. Consider Smaller Regional Players
When you Google “truck rental companies”, many big-name brands will immediately pop up. But if you look beyond these recognizable brands, you may get better deals with smaller companies. They can be more flexible in negotiating rental rates in order to gain a bigger piece of the market. Although they have fewer options compared to the bigger chains, you may be able to negotiate your way into a newer or upgraded model close to your ideal vehicle.
2. Don’t Immediately Assume You Need Extra Insurance
Be sure to check your existing primary insurance policy if it already provides rental vehicle coverage. Many credit card companies already cover basic insurance and some even offer a more comprehensive coverage. It pays to be aware of the different types of add-ons and decide if it will be worth it for your business:
Supplemental Liability Insurance
This gives you protection you in case a third party makes a claim against you after an accident in your rental vehicle. The coverage generally maxes out at $1 million.
If you will be using equipment that is expensive to replace if damaged or stolen, this extra protection will save from headaches unless you use the vehicle in a manner that violates the lease agreement.
Typically, truck rental services offer two types of damage waivers: Physical Damage Waiver (PDW) and Limited Damage Waiver (LDW). Each one covers different kinds of damage and may require you to pay a deductible.
This type of insurance covers injuries that may occur. It may not be necessary if you already have health insurance or medical coverage.
Cargo insurance or personal effects coverage protects your possessions in the case of theft or an accident. Homeowners or renters insurance may cover this so be sure to inquire with your insurance agent.
3. Beware of Hidden Fees
If the rental company dispatched the rental vehicle to you with a full tank, you will be required to return it at the same level. Otherwise, you may be charged up to 2-3x the price of a full tank, regardless of how much was in the tank when you turned over the car.
Study their damage policy and make sure you understand the distinction between what is considered damage and what is normal wear and tear. Inspect the vehicle for any dings and dents before leaving the lot. It helps to take a few pictures of the front, back, and sides of the vehicle, leaving little doubt as to the condition the car before you leased it. If your profession involves jobs that may be rough on the truck, choose a provider that understands these conditions and will not penalize you scratches, dents and dings as long as they don’t affect the structural integrity of the vehicle.
Some unforeseen events may make it impossible to return the vehicle on time. Choose a company that has cheaper late fees or has a flexible extension policy.
Don’t forget to check for fees tied to GPS and electronic toll collection systems as these can add up quickly.
4. Determine the Right Type and Size of Vehicle You Need
Size matters when you rent a truck. If you get the wrong type of vehicle, you may end up making two or more trips resulting in wasted time and fuel. The type of cargo you will be hauling will also determine if it is better to rent a pick-up truck or a van.
A pick-up truck has an open bed and off-road capabilities, while a van has an enclosed cargo area for stowing tools or equipment. Pick-ups are common for construction work where medium to heavy towing is involved. They are also a better option when hauling hazardous or noxious materials since the driver and occupants are not exposed to harmful substances.
Vans, on the other hand, make working inside the vehicle much easier improving efficiency. They offer a bigger storage capacity and are best for trades that require bringing a lot of spare parts and tools while keeping them organized and protected from bad weather conditions.
Getting the right type of vehicle can rid you the hassle of unnecessary trips thereby saving on fuel and can greatly affect the productivity and job satisfaction of your work crew.
Do you need work truck rental providers for your business? With a fleet of over 800 vehicles and growing, Thomas Solutions has a wide array of work vehicles for lease or rent. Whether you are in Hamilton, Niagara, GTA, or anywhere in Southern Ontario for that matter, we would welcome the chance to see if we can help you with your truck rental or fleet leasing needs. Contact us today.