, ,

Renting vs. Owning a trailer

From cars to furniture, leasing has been identified as an innovative business model that gives assets a longer service life. It reduces total cost of ownership, material use and carbon dioxide emissions.

More consumers prefer rental solutions to buying also to avoid the burden of owning an asset. Ownership includes taking care of purchase, maintenance as well as disposal. In most of the cases, the question is not whether to rent or buy, but rather how to find a solution that gives the best value for the assets you need to use.

 

Why renting a fleet

There are numerous risks related to owning trailers, which frequently results in an extensive cost landscape on top of the asset investment. Managing an owned fleet is often challenging, time consuming, and costs are difficult to forecast. It takes away resources that companies could instead spend on the core business.

 

Risks of owning a fleet

Outsourcing financing, maintenance, and divestment of the fleet is usually the right choice to secure lower costs, better liquidity, and more reliable operation with higher assets utilization.

PNO’s “one contract to one point of contact” results in hassle-free operations “from cradle to crave”. Our customers can thus easily get a full picture of all their future trailer-related costs. This also leads to significant savings in terms of money and employees time.

Financial benefits

In 5 years of ownership, a fleet investment of 0,6 MEUR will result on average in total cost of ownership (TCO) of 1 million euros after divesting the asset.

If a company chooses to invest in trailers, it will have less cash to invest in other areas with more profitable outcome. Hence, it becomes a relevant cost in the company’s budget.

 

Total cost ownership (TCO) – 5 years (MEUR, Million Euros)

                                           

Environmental benefits

The sharing of trailers through short-term rental services leads to higher utilization compared to ownership, due to less still standing units.
Although the environmental impact of trailer sharing has not been measured yet, a Deloitte study shows that shared cars has 40% less CO2 emission than owned cars due to higher utilization.

The fleet of PNO had an average utilization rate of 94,2% in 2018, meaning that assets were rented out 94,2% of the time. It is not yet possible to track how the trailers are utilized by our customers. Nonetheless, because short term rental service is used for here-and-now needs and the rental period can be customized, we expect the utilization to be significantly higher compared to owned trailers.
To increase trailers’ usage PNO is currently looking into a solution that enable trailer sharing among customers. A feature that will be part of the PNO Rental Platform.

 

Renting vs. Buying a trailer

                         

Related news

Country Director in Norway
, , , , , ,

One month as a Country Director in Norway

How to turn a Seafood trade fair in Barcelona into a business opportunity At the beginning of May, our new Country Director in Norway, Kim Laméus, visited the PNO Group office in Copenhagen, and we had a chat about his first month as Country…
Solar panels Finland
,

Reducing Consumption with Solar Panels in Finland

We had a goal of saving 42%, but already in the first year, we exceeded the goal as the cost savings were 45%, says Petteri Heino, Country Director in Finland. PNO Finland's Solar Panel journey began in 2016. Not many thought of Solar Panels…
NET ZERO 2030
,

PNO’s Climate Investments toward Net Zero 2030

PNO has committed to Net Zero by 2030. It is a commitment to become emission-free by 2030 – not only through our own operations but throughout the entire value chain. We continue to build on our sustainability efforts (B Corp framework) and…
Thomas Rimington
, ,

Announcement: Organizational change at PNO

It is with great excitement we announce our new Chief Operating Officer (COO), Thomas Rimington. For many, Thomas is already acting as COO while being CFO. Thomas has worked with PNO for more than five years as our CFO, and he has moved…
PNO Finland
,

Even ravens wish to be a part of PNO Finland

How it all began In 2003, PNO's office in Finland was in the Eastern part of Helsinki, sharing a former shipyard area with other trailer rental companies, but the Finnish team needed more space. There was a forest area outside Helsinki…
WeForest
,

Our kilometres are making a difference in Zambia

We're supporting the forests in Zambia through our Health initiative with our partner WeForest. When you think about WeForest, you might think it's about planting trees, but WeForest is actually much more than that. As a team, we have supported…