Is it better to lease or buy your truck?

We leased all our trucks. We did approach Penske and Ryder, but we got better deals and better trucks from the manufacturers; first IdeaLease (International), then PacLease (Kenworth).

Leasing gave us flexibility in expanding or contracting our fleet size, which we were able to capitalize on. We did not have to commit to long-term ownership, especially at a time when operating issues (emissions) of new trucks was a major concern. Nor did we have to invest in business infrastructure (shop and tools) or personnel to maintain, repair or rebuild trucks, as would have been the case whether we bought new or used. Our lease agreements contained a truck replacement provision so uptime was essentially guaranteed.

The monthly lease cost was about the same as buying new. The monthly meterage cost was money we would have had to set aside if we owned, although it was slightly higher. All the maintenance was done by the dealer and a side benefit was secure days-off parking availability. All-in, the non-operating costs (including insurance and registration) of the leased trucks was about 12% of revenue and there was no escrow required; only first and last month's lease payment.

In both cases, we could have actually used the leasing company's authority, and they also offered to handle IFTA for us. We did not use either option, but it was there if we wanted it.

 

Lease from a good company. Check out reviews. Make sure there are no penalties for walking away and any escrow accounts you have are cashed out & returned to you if you quit for any reason.

 

i am not sure if you wanna get into a lease deal with a carrier, or lease a truck on your own, from a dealership.

but, that being said.............

3 companies that i had worked for, leased thier trucks, and that was because they were dedicated companies. so no sense in buying then losing the dedicated accounts.

BUT they had PM's and repairs factored in with the lease agreement.

they still needed insurance and IFTA, that they had to pay separately from the lease. BUT you can roll that in as well.

i think it's gonna be a very costly way to go, good luck.

 

Talk to your accountant. If you purchase the truck, then there is an interest deduction, depreciation, and other accounting processes. If you lease, the entire lease payment is just another business expense. Find a good Accountant that specializes in taxes for truckers.

 

IF I were still driving AND was considering becoming an OO I would lease. The thing is just as with insurance getting a lease with little or no real experience might be a bit tough. This is my take on the question. IF you have to ask most likely you are not going to be able to do either right now. Leasing companies won't lease to you AND insurance will be VERY expensive IF you can even get someone to write! I am not trying to bust your chops OP, just giving you the lay of the land where you are headed!

 

TWO MILLION...each new Cascadia or Volvo day cab cost us around 1600.00 and change a month times 8 plus 3 straight trucks. the monthly nut before adding in the extras.

 

O/P you owe it to yourself to check out BYOB&CBD as they have some of the easiest lease terms and finest vehicles in the known universe. And as long as you don't have child support to 10 kids and 3 x wives, your credit is good to go. Driving record, as long as you haven't run down a bus full of nuns, I'm OK with it. Now get out there and show everybody what you've got and make some mad money!!!