Clark: Scalability makes full-service leasing a smart choice for private fleets
To say that the industry is in a state of flux would be an understatement. Until quite recently, it seemed as though the “freight recession” was winding down, with industry experts anticipating moderate growth in demand for 2025. However, the recent tariffs have thrown a wrench into these predictions. As the American Trucking Associations noted recently, “the tariffs announced today have potential to depress freight volumes and increase equipment costs for our industry.”
This is creating a high level of uncertainty, something that businesses and investors dread, so any action that can offer certainty is welcome. While companies can’t control external economic factors like tariffs, they can manage their expenditures wisely. Until the effects on the economy play out, business leaders need to play it close to the vest with their expenditures and their investments for future growth and sustainability.
For companies with private fleets, this might mean looking to a full-service leasing provider rather than investing in their own vehicles, maintenance, and upkeep. There are a number of reasons why this makes sense:
- Fixed monthly lease payments provide predictability that enables fleet managers to accurately budget. That’s especially important as fuel prices fluctuate and parts/component prices and insurance costs continue to rise.
- By avoiding the capital outlay on expensive trucks, businesses can preserve working capital until the economic impact stabilizes.
- As truck technology advances, so will the rise in costs for necessary tools, platforms, training, and expertise to keep assets road-ready and fuel-efficient. Add to that the cost of building and maintaining a maintenance facility, and it’s easy to see why outsourcing maintenance makes business sense, even in a good market.
- Remarketing vehicles when the time comes is time-consuming and costly. Private fleets that lease through a full-service truck leasing organization can transfer some of the residual value and depreciation risks to the leasing company. This shields fleet managers from the volatility of the used-truck market.
See also: ‘This is nuts’: Supply chain expert on tariffs, trucking
Scalability is the smart play in an unpredictable market
No one can predict exactly what impact the current situation will have or how long it will last, so companies and their fleets need to be prepared to leverage every advantage they have. If demand is suppressed, a company doesn’t want to have too many trucks sitting idle for an extended period of time. Conversely, if the tariff issue is resolved and the supply chain bounces back, fleets need to be ready with additional trucks as demand increases. Working with a full-service leasing provider gives fleets the agility necessary to respond to changing market conditions. Leasing affords flexibility to scale the fleet up or down as demand and conditions change.
Leasing delivers stability—and a strategic edge—when it’s needed most
As businesses confront an increasingly uncertain future, the case for truck leasing grows stronger. By embracing leasing solutions, private fleet managers not only secure financial predictability and operational flexibility but also gain access to the latest technologies and expert maintenance services. These advantages enable leased fleets to not only survive but also thrive in an ever-evolving industry landscape.
