Hire vs Buy: When a Melbourne Business Shouldn't Own Its Trucks

A delivery vehicle earns nothing eleven months a year if it was bought for the December peak. That single sentence is most of the hire-versus-buy decision — businesses should own the fleet their average week uses, and hire the fleet their peak weeks demand.

The ownership costs that don't fit on a windscreen price: registration, insurance, servicing, tyres, depreciation from the day of purchase, and the capital itself — money parked in a van is money not parked in stock, staff or marketing. A hired vehicle converts all of it into one line item that appears only when the vehicle earns.

The patterns we see across Melbourne businesses: e-commerce and courier operators adding vans for the November–December surge; furniture and appliance retailers covering delivery-driver leave; construction and fit-out firms taking a tipper or tray truck for the fortnight a project actually needs one; and everyone's least favourite — the owned van in the workshop, covered by a hire that keeps contracts running.

Weekly hire is where the model gets sharp for business. From day five the weekly rate applies, one invoice covers the period, and GST-inclusive pricing keeps the bookkeeping clean. Need the same van every Monday? A standing arrangement beats re-booking — ask us.

The test is utilisation, honestly measured: if a vehicle would sit idle more than half its life, hire it instead. Your accountant will reach the same conclusion — hiring turns a depreciating asset into a cost that only exists when the revenue does.