To buy or hire?
That’s the question.
As a business owner, it’s a big decision to make – particularly during these difficult economic times. Shipping containers are a sizeable investment and, before you part with your cash, it’s important to establish what makes the most financial sense for your company.
Here at Gap Containers, we offer both container hire and shipping containers for sale. But the reality is, nine times out of ten, we recommend that our clients take the rental route.
Yes, certain factors will need to be considered, such as how you intend to use the unit and whether you’d like to modify its appearance, but it’s impossible to deny – renting a shipping container offers many benefits. And for most people is the savviest option out of the two. Here’s why.
5 financial benefits of shipping container hire
1. It’s more affordable
This is especially true if you only need it short-term or for a one-time use.
Whether your company is big or small, it’s important to manage your expenses – and for many, the large cash input required to buy a shipping container can be a challenge.
By contrast, shipping container hire is an incredibly affordable option. Our hire rates currently start from as little as 85p per day! Which means, you can use one of our high-quality containers – for however long you like – without the huge initial outlay or affecting your company’s cash flow.
2. It offers flexibility
If you choose to buy, you run the risk of solving a temporary problem with a permanent solution. You can’t change your mind about the style or switch it for a different size if your requirements change. You’ve invested in that particular container, and you have to stick with it.
Container hire, on the other hand, is much more flexible.
Payments are taken on a month-by-month basis. So if the unit you choose no longer meets your needs, you can simply hand it back and swap it for something more suitable. Your monthly hire rate may change slightly; it may go up, or down. But you won’t need to sell your current container to recoup the cash or be left out of pocket in any way.
3. It avoids the hassle (and expense) of disposal
Selling a purchased shipping container can be a lengthy and costly process. If you do manage to find a buyer, this will generate some income. But like with most noncurrent assets, the container will probably have depreciated – and you may not be able to recover the full cost.
Disposing of the container is another option. But again, the initial investment will go to waste (along with the unit itself) – and if you dispose of it improperly, there’s a chance you could be fined.
Renting a container allows you to avoid this hassle. Once you no longer need it, simply arrange a return. We’ll collect the unit and bring it back to the depot, and your payments will stop. Easy as that.
4. There are no maintenance costs
If bought outright, the shipping container is a fixed asset – and solely your responsibility. This means you’ll need to take the necessary steps to maintain its condition and ensure it’s always safe and secure. Both of which can be an unwanted extra expense for your business.
If you hire a container instead, this responsibility lies with us.
All of our units are supplied clean, dry and secured with a padlock. You won’t need to worry about the maintenance costs. And we’ll deal with any issues and repairs, as and when required, to keep the unit in optimum condition and ensure it’s performing at its absolute best.
5. It could entitle you to a tax benefit
Most businesses that choose to rent a shipping container are entitled to a tax benefit.
The monthly cost of the rental directly impacts your bottom line. Therefore, you may be able to deduct this as a non-taxable business expense – saving you a little money each month and successfully helping to enhance your profit margin.
On the flip side, this tax benefit will not be available if you choose to purchase the container as an asset. And as such, is certainly something to keep in mind when making your final decision.
Is renting a container always the most cost-effective option?
Not always – but in most cases, yes. Container hire tends to be the most economic option if:
– you only need the unit for short-term use
– there’s a chance your requirements could change in the near future
– your immediate budget is limited
In fact, there are only very limited circumstances in which – from a financial perspective – investing in your own shipping container may be more beneficial.
Essentially, it comes down to how long the container is needed. If you plan to use it in the traditional manner, to transport goods, how many journeys will it make? Just a couple of return trips? Or do you wish to ship long-term? If you require the unit for storage purposes, do you need the extra space temporarily? Or would you like to permanently install the container in a particular location?
To give you an example:
Imagine you need to ship goods overseas for approximately 2 months. If we quoted £2.50 a day to rent your chosen shipping container, the total cost at the end of the 2 months would be around £150 – plus VAT. Which is significantly less than it would cost to buy the same container outright, and as such, financially worthwhile.
On the flip side – now imagine that you needed the same container to ship goods long-term (i.e. for 12 months). Based on the same daily rate of £2.50, the rental for the full 12-month period would cost around £900 – plus VAT.
This is still excellent value for money. However, in this scenario, it could make more financial sense to buy your own shipping container. Not only could this reduce the average daily cost of the unit, you’re also then free to sell the structure at a later date (i.e. once it’s no longer required) and recoup some of your original investment.
Here at Gap Containers, we even offer our customers a ‘buy back guarantee’. Which means, if you do decide that buying is the savviest option for you, you can sell the unit back to us in the future. Providing the container is still in a good condition, we’ll be happy to take it off your hands – and we always offer a fair and competitive price.
Still unsure of the most cost-effective route for you?
Further guidance on this topic can be found in our previous blog ‘Should I rent or buy a shipping container?’ – so it’s worth taking a look at this.
Please also keep in mind, you’re always welcome to get in touch. Our team of experts are on hand at all times and happy to help.
Following a quick chat, we can offer our expert advice on the best option for your current needs and financial situation. Even if that’s to purchase your own unit, you may find it’s still worth renting first – as this will give you a better idea of the ideal size and features for your requirements, before making the final investment.
We have a diverse range of units available to rent, including new and used ISO containers, refrigerated containers, high-cube containers and more – in a variety of standard and non-standard sizes. All of which are eligible for free, fast delivery to any location in the UK.
To discuss your needs in detail, give us a call on 0870 240 9405 or send an email to sales@gapcontainers.co.uk and we’ll respond to your enquiry.
Or, if you believe hiring a unit makes financial sense for your circumstances and would like to arrange a shipping container rental as soon as possible, simply fill out our ‘quick quote’ form and we’ll respond within an hour, with further information on the next steps.
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