Should You Buy or Rent A Bulk Fuel Storage Tank?
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Buy or rent? It’s the age-old question asked by fleet managers everywhere. A savvy fleet manager already knows the benefits of on-site bulk fuel storage, but the options for best utilizing that fuel storage are many.
While we at Western Global sell directly to construction contractors, we also work with some of the country’s largest rental houses who rent our double-walled tanks, particularly the TransCube and TransTank Pro.
Let’s break down the benefits and drawbacks of buying a fuel storage tank vs renting one.
Buying Your Fuel Storage Tank
The quickest way to determine whether buying is the right option for you is to look at the potential utilization rate.
How often are you currently renting fuel tanks? Do you rent one for every job? How often might it sit in the yard vs. on the jobsite? Looking at your available data can help point you in the right direction.
In addition to utilization rate, consider the pros and cons of buying:
Pros of buying:
- Business value: Owning equipment adds another asset to your balance sheet and can increase business value. Bonus: Western Global tanks have long service lives and high resale value.
- Tailor-made solution: If you buy direct from Western Global, we’ll ensure that you get the turnkey package best suited for your needs, so all you have to do is drop it on the site and add fuel (diesel, gas, or renewable fuels).
- Availability: You don’t need to rely on your rental partner to have tanks available on short notice. Owning tanks means you always have what you need when you need it. (And if you get in a pinch, we have the fastest order turnaround time in the industry thanks to our network of locations across the US and Canada.)
- Tax benefits: Purchasing fuel tanks can reduce your tax liability. You can deduct the full purchase price using the IRS Section 179 deduction along with a first-year bonus depreciation allowance or deduct a portion of the cost each year as the asset depreciates. Requirements can be complex, so consult with a tax professional to determine your eligibility.
Cons of buying:
- Up-front cost: If cash flow is a concern, the up-front cost of a tank is higher than simply renting — in the short term. But if this is an asset you know will have a high utilization rate, you’ll see return on your investment quickly. We also offer financing options through Western Global Finance US and GreatCanada Financial Services.
- Maintenance time: When you own it, you take care of it. Proper maintenance of fuel tanks is critical to ensure optimal performance, so it’s important to make sure your team is keeping up with regular maintenance schedules.
- Liability: As with any owned asset, you foot the bill for any damages. Fortunately, Western Global offers a best-in-class 8-year warranty on all steel fuel tanks.
- Specialized labor needs: In most cases, CDL drivers with hazmat endorsements are required for transporting fuel. So, if you own the tank, you’ll need properly certified drivers to move it from one site to the next.
At a Glance: The Pros and Cons of Buying
More maintenance time
Up-front cost
Responsible for damages
CDL and hazmat-approved drivers may be needed
More maintenance time
Up-front cost
Responsible for damages
CDL and hazmat-approved drivers may be needed
Renting Your Fuel Storage Tank
Renting is most advantageous for short-term projects or when you want or need the latest and greatest technology. Most rental partners offer both short and long-term rental terms to fit the needs of your project.
But as with anything, there are upsides and downsides to renting fuel tanks:
Pros of renting:
- Hands-off upkeep: You don’t have to worry about maintenance or repairs — it’s all part of your rental agreement.
- Cost: The average monthly cost to rent a tank is around $1,000, which is a smaller outlay than purchasing your own (depending on how often you rent and for how long).
- Flexibility: You can select different sizes and packages based on the needs of each individual project, rather than being locked into a tank that might be too small or large from one project to the next.
Cons of renting:
- Availability: This is a big one. If you need a tank in short order, your rental partner or fuel distributor may not have the available inventory to support you (particularly because Western Global tanks are a highly utilized and in-demand fuel storage option).
- No added value: Renting a tank doesn’t provide the same bottom-line benefits as purchasing, like tax write-offs and asset-building.
At a Glance: The Pros and Cons of Renting
Availability challenges
No tax write-off
Responsible for damages
Availability challenges
No tax write-off
Responsible for damages
Find The Right Storage Solution for Your Organization
The decision to rent or buy a fuel storage tank is ultimately unique to your fleet, business and industry. Regardless of which option you pursue, consider the advantages of choosing a modern fuel storage tank from Western Global:
- Multiple ports allow our tanks to serve as an auxiliary fuel supply while still being able to fuel trucks and other equipment, extending run times.
- Four-way forklift pockets make Western Global tanks easy to transport.
- Locked cabinets and available card scanning systems keep fuel and equipment secure.
- Built-in double-walled containment helps you avoid ground contamination – and a fine from the EPA.
To determine the best Western Global tank for your needs, check out our fuel tank selector tool or get in touch with our expert team today.
Authored by
Ben Inkrott
Director of Product Management - Western Global - NA - Western Global
Ben Inkrott is the Director of Product at Western Global. He has a diverse background in developing and launching hardware and software solutions that solve everyday challenges for industrial customers. Ben holds a bachelors degree in engineering and a MBA. Connect with him on LinkedIn.