Leasing or Buying Shipping Containers- Which is the Best Option? | LOTUS Containers

Leasing vs buying shipping containers has been that one question that people keep thinking about when they think of paying a shipping container supplier a visit. Whenever the person has to ship their cargo to some different place or when they have to store goods in large quantities, then the need for shipping box is developed. And then comes our burning question in view. But, to buy or to rent, will never be a question when you connect with the right container provider. You can buy a cargo container when you want them for a longer time. And when you want the freight container for less time, or you have less budget in hand, then you can get them on lease as they provide a cost-effective solution for your container needs. 

By looking at the points given below, you can choose between leasing vs buying shipping containers and get what is best for you. 

Duration

The period for which you need the shipping unit plays a very important role in deciding whether you should go for purchase or lease. If your requirement is for long, let’s say 10 years or more, then leasing a container and paying monthly rent won’t be much economical. A Long-term Lease is one such option that allows you to hire a container for a longer duration.  (E.g.) Someone who is looking to rent a container in Denver for 20 years then, s/he can get them by contacting a shipping container company as they have an abundant quantity of shipping and storage containers.  

But during the past few years, container suppliers are seen stepping backward in providing boxes on Long Term Lease. This is due to various risks and losses associated with this. Most of the time either they have to spend a lot in finding those old customers or they do not even get containers back. And hence you may find very few suppliers out there who would be still dealing in Long Term Lease (LTL).

Moreover, it’s always advisable to buy freight containers when you need them for a longer duration so that you can escape from the burden of monthly payable rent. Instead, get the ownership, use them for how many years you want and once their use is over, you can sell them back to your supplier. Yes! There are some container suppliers like LOTUS containers who benefit their customers by offering buyback services to get rid of your unused boxes in return for a fair sum of money.

Budget

From an operational perspective, container leasing is found to be 60% to 70% more expensive than buying, yet a majority of the people tend to opt for leasing. What makes it so preferable? The answer can be summed up in a single word- flexibility. When you don’t have enough money in your budget, you should definitely lease instead of buying. That is because when you buy shipping containers, you become the owner. You are liable to pay not only for the box’s price but also for its storage space and repositioning, etc. As shipping units during the non-transition period would need spaces where you can store them, so consequently you will have to pay rent every time you rent storage space in a depot.

But leasing doesn’t give you these burdens. When you lease a shipping container, it becomes your supplier's responsibility to arrange storage space. You do not even have to bother with the transportation cost of repositioning. The leasing policy includes repositioning services as well. No matter at what port you have shipped your shipping unit, your supplier will arrange its way if it has worldwide existence. That’s why it is advisable to hire a supplier who works on a global level.

Uses

You really need to be clear about your purpose in acquiring those boxes. They have numerous applications. Make sure whether you want them for storage, transportation of cargoes, or as shipping container homes. A clear knowledge of purpose will give you a broader view in deciding the way of acquisition. You can get the metal shipping containers for sale in two cases- either to use them as storage units or to ship your consignment. Besides these two, if you are looking to play innovatively from steel boxes, you can do it only after getting complete ownership. 

Over the past few years, building with shipping containers has gained tremendous attention from people across the world. Be it a house, shop, office, swimming pool, sauna, or anything, one can construct anything out of it. (E.g. If A has to build a home in Texas but doesn’t have a good budget, s/he can buy a shipping container in Texas and then modify it into a home which will be the cost-effective solution.)  You have to keep in mind that you cannot cut, weld, design, or modify leased equipment. Leasing only permits you to use it until an agreed duration. Leasing does not give any right to use it for building purposes. So, if you are looking forward to constructing buildings out of them, buy them.

Location

In some parts of the world, leasing is less attractive. This is because some of the locations do not have container depots. Lack of container depot disables the storage of containers and repositioning of empty containers. Empty containers incur a major expense because they have to be repositioned at a high cost to the regions of higher demand. Hence suppliers, in order to avoid losses, do not provide containers on lease.

While in countries like Germany, China, Australia leasing can yield a good output. You are not bound to only buy steel containers because depot shortage is not an issue. The availability of depots at every port enables shippers to acquire containers on lease.

Size

For companies who need 1 or 2 containers, then ownership is the right choice. While for companies needing large size, let’s say 50, then leasing would be more cost-effective. Don’t forget when you get ownership, you have to arrange storage space and bear storage costs. Paying storage costs for 50 containers can cost more than what you would have imagined. Buying is always economical when you do not need too many of them.

Thus, the above-mentioned containers help you take decisive steps and you can choose well between the both.  Leasing vs buying shipping containers, they both are good options depending on the situations, purposes, and above given criteria.