Should I lease or buy a work vehicle?
We at GB Plumbing decided to lease our first work vehicle as we thought we wouldn’t be growing or doing much besides having 1 truck. But once things got busier, and we had to start hiring more, we had to buy a truck pretty quickly to keep up with the demand of work, and same for our third vehicle.Sticker SHOCK! 😲
I have been doing my office's annual purge and came across some old invoices from the earliest power equipment my business purchased. Believe it or not, some of the equipment I use has doubled in price for the replacement model at today's cost. Since it is our responsibility as owners to be profitable enough to replace/repair equipment as needed, I find myself adjusting my equipment cost recovery number upward almost monthly in my budget. How often are you adjusting your cost recovery upward to adjust for the ongoing inflation?New, Used, or Lease? And WHEN?
As a small business owner it has been nothing short of challenging to build a business from nothing. I came from nothing and have built this thing from the ground up. I didn't have a lot of money. When I first started I couldn't afford company vehicles. I eventually bought used vehicles in the $20K-$30K range and financed them and that was fine until I unexpectedly slowed down and had to sell off my trucks just to survive. Once I rebuilt from the slow down I decided to buy used vans around $9K to $10K cash. Right now I have 6 vehicles. One of those vehicles needs major work done. And the others are all 100K miles or more and I feel like they are just ticking time bombs. I want the reliability of newer, or leased vehicles but the risk intimidates me after my struggles in 2022. Is there a formula for when you should go from paying cash for used, to financing newer/new, and to finally leasing? Is there a revenue metric, a number of vehicles in your fleet, or some other sign that going one route over the other is more advantageous or less risky? Thanks for taking the time to read this and share feedback!
Tasks in Jobber for Equipment Maintenance
Is anyone using tasks in Jobber to track/schedule regular maintenance on equipment? Oil changes, new tires, etc. If so, I'd be curious to hear how it is working for you. How easy is it to pull up the maintenance history on a particular piece of equipment? Before looking at a separate solution, I'd prefer to use something we already have.
You Quit Your Job to Start a Business — So Why Gamble on a Used Truck?
Everybody says the same thing: “Just buy a used truck, it’s cheaper.” Yet, That same truck breaks down 3–6 months later. Now your jobs are delayed. You’re borrowing vehicles from your spouse or rental. You’re stressed out and behind on bills. And suddenly the “cheaper option” is costing you way more. Here's my personal take: You quit your job ... You are betting 100% on yourself, to care for your livelihood. If you’re betting your whole future on this business — why risk it with a vehicle that might leave you stranded? I hate blaming others, or the lack of accountability. So if I can control one variable — like my ability to show up to the job, that will pay me for my services... I’m going to do it. But that's just my opinion. My hot take, What do you all think? I created this visual for myself to follow and share whenever anyone is deciding to get a vehicle.Owning vs Leasing Commercial Vehicles. What's better and why?
I've heard the plusses and minuses of both these. From the higher level CEO's I've heard talk on the subject, they basically say never buy a vehicle in the company name. I've done both. My first two vehicles - one is a 2016 Tacoma and the other a 2020 ford transit connect. The Tacoma has been a work horse. No problems. The 2020 transit, I bought an extended warranty on. The transmission needed replacing while it was under warranty BUT the warranty company fought me tooth and nail on replacing. Fortunately I was able to convince them to but if not, I would have been on the hook for $10k AND still owed like $15k on it. No Bueno. THen I leased a bigger Ford Transit. This I did through a company called Jump Spark. They rolled the wrap, the upfit and the lease payment all in one then leased me the vehicle. I think technically they are the ones that own it. It was like $2k out of pocket and I pay $1300 per month for 60 months. So definitely a higher cost but I have the option to trade it in after a couple year. I feel like if you never have repairs, buying would be the way to go. How do you all feel about this?
