When Equipment Leasing Makes Sense
Updated: Apr 28, 2023
As a project manager in the logistics and shipping industry, have you ever found yourself in the situation where you need to decide whether to take on new business or not due to investment requirements into capital intensive equipment?
Since the early days in the 1990's, equipment leasing has been a trusted business model for Kar-Tainer enjoyed by our customers and partners around the world. We discovered early on the advantages we could deliver by focusing on equipment leasing as opposed to equipment sales. Especially for the segment of vehicle containerization the Kar-Tainer equipment caters best for: Big volume OEM shipments.
The logistics provider managing such shipments will usually be awarded with a two or three year contract for the business, rarely sufficient time to fully amortize the equipment investment required to service such a contract. Kar-Tainer's equipment leasing model helps containerized vehicle shippers keep the equipment cost as a mere cash-flow item, instead of a big upfront CAPEX item.
Additional Advantages
Besides the pure financial benefits obtained through equipment leasing, our customers enjoy an ongoing business relationship with Kar-Tainer as the equipment provider. When Kar-Tainer partners up with a logistics provider for a containerized vehicle project, we do not only provide a product or piece of equipment used to load and transport cars, but we also provide a service ensuring that vehicles are safely and efficiently loaded and transported on our equipment throughout the course of a contract.
This long-term relationship translates into numerous advantages such as: Extensive training of all loading personnel involved in any project; regular quality audits at all locations of operation throughout a contract; a partner at your side from start to end supporting on solution design, planning, and quality reviews; rapid corrections to any equipment related issues that might occur through the course of a contract, and more.
In the logistics industry things can change in the blink of an eye. In vehicle containerization this may be through external supply chain disruptions; extreme weather, changes to shipping lanes or local infrastructure, regulatory changes in any or more markets you are operating, or a range of other issues. It can also come from customer related topics; introduction of new vehicle models, increase or decrease in volumes, stops to production, etc.
In any of these scenarios, having a equipment provider which is also a long-term partner with a shared, long-term interest in keeping your solution functioning at its best, will be a great advantage. We always work with our partners to find an optimal solution to any problem that may come up throughout a project.
Get in touch with us to figure out how our leasing model can help optimize the financials of your containerized vehicle project and learn more about the advantages of having a trusted equipment partner at your side at all times. Get in touch with your closest Kar-Tainer representative or reach out to us through the website contact forms, on www.kar-tainer.com