Is it better to Lease or to Buy?

7% not all that bad considering it is your first loan as a business. I think my first one was either 6.5% or 7%. Today my rate is 5.95% (prime+2.75). Considering prime rate in USA is 3.75% at the moment that really means your rate is 3.25% over prime. Still pretty thin from the bank's point of view.

 

@Midnightrider909
How about asking should how many on here own vs lease

 

I say buy. But if your plans or more temporary, then lease. If you buy new, then really really do your home work on the motor, drive line & gear ratio on the prospected truck. Because; this will be your truck for a very long while. Ask others, search forums, search internet, it looks to me that for new trucks, the X15 Cummins is going to be the most promising. /But then again it's the new and improved isx and is new to the market. /But when I met with cummins at the truck show 2016 and saw the motor, I was very impressed in the effort they made into expanding the dpf size for a way longer cleaning interval etc etc

I also advise, IMO, the more liquid capital you can keep available the better. So if you can get by with $10k down or $15k, that's what I would do.

Good luck

 

yes you find your self in an very interesting conundrum matey best advice to give you and.... (i should of made a career out of being a financial adviser) however them's the brakes huh? Do your due diligence by all means get as much advice from in here as there are lots of experienced drivers with 100's of years of combined knowledge, however your always best off getting a certified qualified accountant to do a risk assessment it'll be the best investment you ever make. You have cash and good credit which is a great start however going O/O that money will soon disappear after a few repairs and having to pay for all your day to day running costs especially if you have to wait a while for your first pay check if its weekly then you'll be fine as long as the money coming in is greater then the money going out and that's where an accountant would be good to engage however if your pretty cluey and smart and do your own calculations you could possibly figure that out yourself.

 

It's a risk that's for sure . Though I don't see you losing the house on a 40k debt . I'm not sure the truck price you guys were looking into . My interest rate sucks I wish I had done better . I'm surviving though .

 

Is there a reason you are against tapping into the equity?

 

I

So you don’t end up homeless if your business fails. Generally better risking the banks money at higher interest rate,,, me I’d go with my 3% line of credit if I wanted a truck.

 

how about doing a cash out refinance and pulling say 50k for a truck on a house with over 100k iN equity??

 

You won’t get a good interest rate being a fist time buyer.. find you a truck and run the numbers at the stealership.. only way to know where you stand and what options you have.. I’m not a fan of lease..do not leverage your house for a truck, most trucking start ups fail..