Which one is more feasible to use: a hired vehicle or a company vehicle (for material and labor transport), and why?

A hired vehicle is more feasible than a company vehicle due to below reasons.

1. It doesn't affect the cost to company.

2. Maintenance is responsibility of Vendor, hence company is not responsible for any loss and damage.

3.  

Hello there........

I would say there is no harm in having a small fleet if the company is in the said sector & does business very regularly . However a better cost benefit analysis would definitely throw some light on the said comparison . You always have your asset at your disposal, not to worry about non availability of the fleet when required. 

For me, it is more feasible to use a hired vehicle.  By having this instead, the company need not to worry of having the fleet maintained, which is very costly.  Also, if the company has a fleet, they will need to hire regular drivers which also require other benefits the same as those of other regular employees. While availing of a hired vehicle only require a certain payment for a specific scope of the service/s rendered.

It is possible to say which is better after analyzing the related cost, revenue or opportunity cost.

For short term usage( less than2 years), it is better to outsource on wet lease basis. For long term operation, say5 years, it may be profitable to have company vehicle(purchased).There are other factors to be considered- if it is company vehicle delivery could be prompt and ensured  and you may paint the vehicle (covered van) with some promotion. Finally, I would recommend the cost factors to take a major role decision making

Hi Jubish,

I would suggest you go for HIRED one though it may cost you little extra. Because they have their routes planned according to the timings and delivering the product on time to the customer is the most important thing for any kind of business.

Happy to Help!

Cheers :-)

Its depends on the size of the company. If the company is so large and it has different outlet in different area where regularly need to move then own vehicle is better. As rental vehicles have some condition and rate also raise due to multiple using.  Own vehicle also bear the Brand Value of the company.

But if its a small organization and vehicle use in limited purpose then rental vehicles are less costly and more feasible. It also helps to avoid additional cost like - Maintenance, Servicing, Parking etc.

Both options has there positive and negative impart, however, the company F&A needs to have a round table discussion and pick which is best expertise check. Having a company vehicle help having the services at the company's disposal, there will be limited delay in availability of the vehicle but all other expense like vehicle services, payment for driver and some all other unforseen occurence cost will be incured . sourcing out the vehicle ssystem might favour the company interms of cash but unavailability when services are needed might might cost the cost some loss 

Any of them two listed options may be more feasible than the other in difrent circumstances, mainly because:

1. we dont know if the listed activity is a current one;

2. we dont know if the activity has been planed;

3. we dont know the scale of the activity;

4. we dont know if there is a transport fleet already in place, capable to undertake the activity;

5. we dont know the emergency of the activity, and so on.

company Vehicals are more fesible for Labor and Materials becuse we can use according our project planning and Production wich is vary importent .

hiring equipment , manpower is not good and main reason for increasing the cost , should be avoided  unless it is urgent  and should be well controlled as it opens the doors for corruption 

In the short run, securing your own vehicle seems to be expensive or costly as you have give in a whole lump sum money to secure it but in the long run, it is less costly in terms of just maintaince after securing it & perhaps it gives freedom, room of convience to the owner in using it & remeber it is an asset belonging to your company. However, when using a hired vehicle, if you calculate the expenses of utilities (fuel), maintaince costs & money or commission paid for its services, it would appear more costly. Therefore it is advisable to secure your own vehicle, incase you don't have a whole lump sum of money, youbcan negotiate to purchase it in stallments