What exactly does cheap truck hire mean?

A previous employer of mine once said "when people do not know what to ask about, they start with price", this is something that I have seen hold true for years especially in relation to truck hire. There are a host off issue that you encounter prior to the cost of the truck rental. The type of truck rental can be done in a number of different ways. Let pretend that you are a prospective customer ringing our offices in Dublin, Ireland. You run a small clothing distributor and need a truck to deliver product to your clients. The rental truck will be based around Dublin predominantly and will not be servicing other towns in Ireland. The driver that you currently have only has a normal car licence. Your question is simple, "how cheap can I rent a truck off you?"

It is the job of the rental company to digest the information that has been provided to them and offer a hire truck that is fit for purpose. Typically with the above information a box truck with tail lift would be the ideal vehicle. If the product is disturbed on rails the customer will not be able to operate without a tail lift. Considering the vehicle is operating solely in the Dublin area we know that the annual mileage will be low, probably in the region of 20,00km per annum. With a mileage level this low we can expect there to be only one service needed per year and tyre changes at 24 months. This particular example is an easy one to calculate and pitch for.

So what makes up the price the rental company will quote?

There are a number of factors that the truck rental company will take into account. These are as follows.

Cost of Vehicle: This is the principle sum that the rental company must spend to purchase the truck. Cost of Finance: Truck rental companies tend to purchase vehicles using finance, this money will be charged at a particular rate.

Depreciation level of the Truck: Not all truck depreciates at the same level. In general the larger the truck, the higher the level of depreciation. Also special purpose of oddball vehicles can be very difficult to resell. As a result the risk factor associated with them will increase the rental price.

Risk Profile of the Customer: A good truck rental company will look hard at the customer and account for risk. Typically vehicle supplied to Government are considered blue chip, i.e. – the rental company knows that it will get paid. If you look at the risk profile of courier and transport companies the level of risk / bad debt rises substantially.

Running costs: Trucks tend to cost more to maintain than vans, this is due to the larger tyres and more expensive service items. Also larger trucks need specialist facilities unlike smaller vans.

Commitment: A rental company will normally seek a commitment from the customer in relation to the time period that the will hold onto the hire trucks. There can be an early termination option with a pre-defined penalty. This is very important for the truck rental company as it counters the initial risk from putting out expensive vehicles which could otherwise be returned on short notice.

When you are considering renting a truck on a long term contract basis you should do your homework prior to approaching the hire company. Forget about the bottom line price and focus on you r needs, price can come later. Be sure that the vehicle specification matches what you need. Pay close attention to penalty clauses in the contract and be sure of exactly what the truck rental companies’ obligations are to you. Once all of this is done, you can now fight for a cheap truck hire price!

























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