Should I buy or rent a container?
In the example in the table below (used Grade A 20ft, delivery and collection included), hire is cheaper over 6 months; from 12 months, buying costs less once the estimated resale value is deducted. Redo the sum with your own quotes: price, delivery, maintenance and resale value change the result.
Comparison over different periods
Illustrative example: a Grade A used 20ft dry costs £1,969, plus £420 for one-way delivery, totalling £2,389. Estimated resale is £1,181 under the 60% assumption. Rent is £79/month; rental transport includes two journeys charged £420 each (delivery then collection). The table adds purchase maintenance and adjusts the resale assumption for each period.
| Duration | Net purchase cost (resale included) | Cumulative rental cost | Verdict |
|---|---|---|---|
| 6 months | £1,235 | £1,314 | Buy |
| 12 months | £1,261 | £1,788 | Buy |
| 18 months | £1,288 | £2,262 | Buy |
| 24 months | £1,314 | £2,736 | Buy |
| 5 years (60 months) | £1,571 | £5,580 | Buy |
| 10 years | £1,934 | £10,320 | Buy |
Illustrative assumptions to replace with your quotes: resale at 60% of purchase price for 6–24 months, 55% at 5 years and 50% at 10 years; purchase maintenance of £53 per year. Resale is an estimate, not a guarantee. Financing, insurance, taxation and unexpected charges are excluded; this is not a universal break-even threshold.
Three situations affecting total cost
The table assumes a standard container with no conversion. Three situations change the calculation:
Reefer: include maintenance and energy
A reefer uses electricity and its refrigeration unit needs servicing. On hire, the maintenance contract is often included; when buying, add these costs and assume a more cautious resale value.
Conversion: obtain the owner’s permission
For a rented container, obtain the owner’s written permission before any structural or permanent modification. The contract may prohibit certain works or require restoration. Purchase may be better suited to a substantial conversion, depending on the project and available offers.
3. Pro Fleet ≥ 5 units
For several containers, ask for a price per batch, for both purchase and hire, and compare the total cost of the fleet over the planned period.
Taxation: how does it fit into your accounts?
Separate accounting, tax deductions and VAT. Treatment depends on the contract, business regime, business use and asset classification. Have each of these three checks assessed separately.
| Criterion | Lease (rental) | Purchase (capitalisation) |
|---|---|---|
| Accounting treatment | Expense or right-of-use asset, depending on contract and accounting framework | Classify the asset: structure, building and equipment may differ |
| Tax deduction | Documented business share, subject to regime and period; no automatic full deduction | Applicable HMRC capital allowances or expense treatment; separate from accounting depreciation |
| VAT | Recoverable only where VAT is charged and deduction conditions are met | Recoverable on the purchase invoice, if deduction conditions are met |
| Cash flow impact | Smoothed, predictable | Concentrated at the start |
| Book value | May include a right-of-use asset and liability under the applicable framework | Asset with an uncertain resale value |
| Site and use-related taxes and charges | Check locally: rental does not mean exemption from local charges | Check according to siting and asset classification |
Accounting and tax treatment depend on your business status and country: have the choice checked by your accountant.
Other factors to keep in mind
- Can you manage resale? — Selling a container takes 1 to 3 months, requires an advertisement, viewings, and transport. For those who do not have the time, leasing remains a real convenience.
- Evolution of need — if you think you will change size in 18 months (larger or smaller), leasing offers flexibility.
- Space available long term — if you are short on space, leasing allows you to return the container whenever you want. Purchasing locks you into an asset that needs to be sold off.
- Insurance and liability — when leasing, the lessor is responsible for the equipment. When purchasing, it’s your professional liability insurance (supplement £53 – £158 per year).
Frequently Asked Questions
What is the simple rule to decide?+
Add up everything you will pay over the planned period. Buying: price, delivery and maintenance, minus a cautious resale value. Hiring: rent, delivery, collection and any deposit you do not get back. In our example, hire wins over 6 months and buying from 12 months.
How does the calculation change for a reefer?+
Add the energy and servicing of the refrigeration unit, often included in a hire contract but paid by you when buying, and assume a more cautious resale value: the unit’s condition weighs on the price.
And for heavily modified containers?+
For a rented container, obtain the owner’s written permission before any structural or permanent modification. The contract may prohibit certain works or require restoration. Purchase may be better suited to a substantial conversion, depending on the project and available offers.
If I buy and resell after two years, how much do I recover?+
Indicative ranges: purchase £1,104 – £2,205 + delivery £263 – £945 = £1,367 – £3,150. Resale depends on condition and the market. Example: purchase £1,593.75 + delivery £400 = £1,993.75. Reselling after 2 years for 60% of the purchase price brings in £956.25. Including £90 maintenance over 2 years, the net cost is £1,127.5, about £46.98/month. Compare this with rent of £51–£140/month plus delivery, allowing time to find a buyer.
Is a lease with an option to buy (LOA) interesting?+
Compare rent, fees, insurance, maintenance, delivery/collection and the purchase-option price. Compare against a detailed purchase quote (£1,104 – £2,205, delivery £263 – £945) and a cautious resale estimate. Tax and accounting treatment depend on the contract and your regime: a purchase option does not make every payment fully deductible.
Also worth seeing
Compare purchase and lease on a quote
up to 5 suppliers offer both options, you decide with full knowledge.