Better to Lease or Buy?

He’s talking about leasing from Lone Mountain or a similar company, not doing a lease purchase from a company.

 

My bad, sleepy head today)

So, is it something like rent the truck? What's the point?

 

Get a start without large capital, or without putting large capital on the line at first.

Two buddies of mine that now own their own trucks started in rentals they got on their own. One didn't have money and the other did. I gave them full access to the financials of my business and they got all the rental information so we could sit down and compare information.

Turns out they would pay just slightly more than me owning a new truck when you looked at every single aspect. Rental truck for instance is 100% write off, a truck payment is not. Free access to another rental truck if theirs went down. I have to pay for a rental owning a truck. Those are just some examples, way more involved in the decision.

If they got a lease from the rental company they saved what was surprisingly not that much compared to a rental. We could never get a straight answer on the cost to end the lease early. That played a big factor in going towards a rental since they wanted to get their own truck on their time schedule.

By the time they both bought a truck they had enough saved up to rebuild the truck after purchasing it. While renting they could hang up the keys at any moment and walk away with zero effort if they wanted. Breakdowns were only an inconvenience for them. Honestly, wish I went that route instead of buying my first hunk of junk.

I've done this same kind of analysis with a couple other guys who own trucks in different situations. It's actually kind of amazing how it all basically cost the same no matter which route you go. Old truck, new truck and rental truck are mostly the same when you factor in everything and not just the things that support the route you personally took.

 

People free to do anything, including those happy running around for $1 a mile.

 

Fulton Bank does. Home That’s how i bought my truck. I did a lease threw them with a $1 buy out at the end.

 

There’s plenty of Companies that do Leasing. It’s still a loan with a payoff. Beware of a payoff that includes all lease payments. It should have an amortization schedule like any other loan. It’s structured as a Lease, usually with a $1 buyout. Banking regulations don’t apply. So be careful what you sign. Figure the actual interest by comparing similar numbers on BankRate.com, using their auto loan calculater. Typically Leasing companies will claim the lease terms are equal to 10%, when actually its 23%. Add all costs, first last pymts. upfront. Remaining pymts. Vs a typical loan at x % rate. for the same term.