Top Advantages to Leasing A Truck
Learn how leasing a truck from Surgenor Truck Group can save you money, provide flexible terms, and keep you on the road with the latest models—empowering your business to thrive.
When running a business, having a company truck can be a valuable asset, essential for transporting equipment and handling various tasks. If you're thinking about purchasing a truck but feel hesitant about making the investment, consider leasing one instead, a growing trend among many business owners. Here are six key advantages of leasing a commercial truck over buying one, along with other useful insights:
1. Lower Costs and Increased Profits
Leasing a commercial truck is often more affordable than buying, as it eliminates the need for a large capital investment. Unlike purchasing, leasing avoids hidden costs like taxes, towing, and maintenance expenses. When you own a truck, you're also responsible for finance charges and sales tax. Leasing helps your business retain more funds, as the monthly payments are typically lower. With less paperwork, you’ll have more time to focus on running your business.
2. No Depreciation Concerns
Depreciation is a major issue when buying a truck, as its value decreases over time. However, when leasing, depreciation doesn't impact you. The truck's devaluation won't affect your business's net worth, and it won't show up on your company's balance sheet.
3. Reduced Maintenance and Repair Costs
Leasing also means fewer maintenance and repair costs. Many lease agreements include full-service plans that cover repairs, routine maintenance, tire replacements, and oil changes. When you own a truck, these costs fall entirely on you.
4. Avoid Ownership Hassles
Leasing a truck removes many common challenges associated with owning a vehicle. You won’t need to worry about compliance issues, driver replacements, or training costs. Additionally, when drivers leave your company for jobs with newer equipment, you won’t be impacted by the loss of valuable assets.
5. Greater Flexibility
Leasing offers flexibility, particularly since many leasing companies don’t require a down payment. Once the lease term ends, you simply return the truck, making it easier to adapt to changes in your business needs. Fixed monthly payments provide financial predictability and allow you to allocate funds for other important business investments or emergencies.
6. 24/7 Roadside Assistance
One of the significant advantages of leasing is access to 24/7 emergency roadside assistance. In the event of a breakdown, a leasing company will provide expert help, including towing, tire changes, and other repairs, ensuring you're never left stranded.
One of the greatest benefits of leasing a commercial truck is the ability to preserve capital by avoiding a large upfront purchase cost, allowing you to keep more cash on hand for other important business expenses.
Understanding common leasing terms can help you make informed decisions:
Depreciation: The reduction in the vehicle's value during the lease term.
Residual value: The vehicle's worth at the end of the lease.
Capitalized cost (cap cost): The negotiated price of the vehicle, excluding additional fees.
Money factor: The finance charge, often expressed as a fraction.
Leasing vs. Renting
While leasing and renting share some similarities, they are distinct:
Time commitment: Rentals are short-term (days or weeks), while leases involve longer commitments.
Provider: Rentals typically come from rental agencies, while leases are arranged through auto dealerships or fleet leasing companies.
Ownership: Rentals offer no ownership option, but leases can allow for purchase or renewal.
Considerations and Warnings
Estimate the number of miles you plan to drive annually.
Determine how long you'll need the truck and what monthly payment fits your budget. Lease payments are usually lower than vehicle loan payments.
Weigh your financing options—buying versus leasing.
Leasing is ideal for seasonal businesses or short-term projects, especially if you want to avoid costly maintenance.
If you're uncertain about needing a truck for at least three years, leasing might be the better option.
Almost every aspect of a lease is negotiable.
Conclusion
As the cost of new vehicles rises, leasing is becoming an increasingly attractive option. It offers greater flexibility, reduces the financial burden of depreciation and maintenance, and allows your business to remain profitable by freeing up capital. Leasing a truck also provides the opportunity to upgrade to a newer model with the latest features when the lease ends.
If you're considering leasing a truck for your business, reach out to the fleet leasing specialists at Surgenor Truck Group to explore your options.