In today’s episode, we will be discussing buying vs. leasing, but more specifically, the advantages of leasing from Penske. As stated in previous episodes, we believe leasing is the best option, especially with small and mid-size fleets, because it offers a fixed cost.
Demand For New Trucks is Very High
Looking at SONAR® which is a platform we are big fans of, we can see that class A vehicle sales, which are heavy-duty rigs, is at a three-year high. That means that lots of people are expanding their fleets. The question is whether this is sustainable growth or we are at a peak that is about to crash. Currently, most people in the market are feeling very bullish. If you are looking to add to your fleet, you need to consider what option is best for you.
Today we are looking at why Penske feels that they are the best option in this space. Penske’s main value proposition is advanced technology. Among these technologies are adaptive cruise control, collision warning, active driver assistance, lane departure warning, lane-keeping assistance, automatic emergency braking, and blindspot monitoring.
As we have said before, the hardest part of getting involved in trucking is managing to get a competitive insurance rate. Getting a rate below the national average is the ultimate goal.
Both Penske and Ryder are excellent at providing sub-units in the event of a breakdown. When running trucks, every driver has to do pre-trip inspections and, especially in cold climates, warm up their trucks before starting.
The Penske representative we spoke with was Eduardo Rodriguez; his contact info will be provided. We are not being paid by Penske. We asked Penske to come on the show and their marketing team would not allow it.
Full Lease Program
Penske offers a full lease program that includes all maintenance. Unlike owning and managing your own vehicles, both Ryder and Penske have tech-based systems through their back office to alert you when maintenance is needed.
Penske at a Glance
Penske was founded in 1969 by Robert Penske. Today, they have over 1,100 locations, 80,000 associates, and 300,000 vehicles.
Picking the Right Truck for You and Your Drivers
We recommend when picking your trucks that you look at what drivers in your area are familiar with. In the Florida market, especially among Hispanic drivers, Volvo is the most popular. That is for features like increased comfort, tighter turn radius, and general driver friendliness.
The Value of Predictable Costs
You need to look at the advantages of predictable costs. If you are a vehicle owner and you suffer a breakdown, not only do you see a large cost spike, but you have to go looking for maintenance in that area. Providers in different states charge vastly different amounts, and as such, your cost will not even be consistent between breakdowns. Penske and Ryder offer consistent costs per mile on top of the base lease and take care of broken-down trucks for you.
Lower Upfront and Other Costs Through Leasing
With a lease program, your only upfront cost is the security deposit and the first month. When dealing with conventional financing, you could have a 5–7% interest rate on top of a 20% down payment on each truck. That can be orders of magnitude higher than the starting cost on a lease. A full-service lease from Penske includes a wide array of services.
Fleet Insight from Penske
Penske offers a solid tool for managing your vehicles and maintenance programs called Fleet Insight. It is available online or via the iOS and Android app. It provides you with everything you need to keep your trucks in good standing. It has a very robust and easy-to-use UI.
The Freight Guru
Download the PDFs mentioned
Safety Systems Vehicle Technology — https://thefreightguru.io/wp-content/uploads/2021/04/Safety-Systems-Vehicle-Technology.pdf
Penske Full Service Lease — https://thefreightguru.io/wp-content/uploads/2021/04/Penske-Full-Service-Lease.pdf
Maintenance Technology — https://thefreightguru.io/wp-content/uploads/2021/04/Maintenance-Technology.pdf
Digital Fleet Tools Technology — https://thefreightguru.io/wp-content/uploads/2021/04/Digital-Fleet-Tools-Technology.pdf
Connected Fleet Technology — https://thefreightguru.io/wp-content/uploads/2021/04/Connected-Fleet-Technology.pdf
Recommended Logistics and Trucking companies:
LTL Services — https://goltlhub.io
Hazmat Services — https://gohazmathub.io
TMS — https://mytruckhub.com
Logistics Services — https://gofreighthub.io
Fulfillment — https://www.sunshipecommerce.com
Warehousing — https://gowhsehub.io