Harry Monk:
If I did it again I would lease one with a full R&M deal. I rode my luck and got away with it but a run of mechanical bad luck can easily send an owner down the pan.
I’m with Harry 100% on this.
I’ve seen lots of lads who gave it a go, bought a reasonably fresh unit on finance, and not many of them made it to the end of their second year in business. This was not always because of poor rates or lack of work, but nearly always because of the run of mechanical bad luck that HM refers to, and the fact that they were unable to continue to fund the repairs because, having committed to buying the truck, their businesses were seriously undercapitalised.
Cash, lad , is King. If you’ve got some, hang on to as much as you can. This will allow you a lot more flexibility if you need to change the direction or type of work that you do. Although I’ve never had a truck on lease with R+M, it’s a pretty attractive prospect, as it takes away, (at a cost admittedly, but crucially a known cost) most if not all of the risk that you would be exposed to with an owned, used, vehicle. Also, as you will have a good idea of your costs from the very beginning you will quite quickly see whether or not your business is viable, and be able to make changes before things go too badly wrong.
As far as I can see, there is no need to be locked into a three year agreement, as several of the manufacturers are offering open ended deals on late used trucks at rates well under three hundred a week with maintenance, and only one months payment up front.
Way to go I think!!