Leasing truck vs buying outright in cash

Discussion in 'Ask An Owner Operator' started by Thetrashnoob, Dec 5, 2019.

  1. Thetrashnoob

    Thetrashnoob Light Load Member

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    I’ve been reading though a lot of threads in this site and I’m just curious, do new o/o lease a new/ used truck or purchase outright to keep the cpm down?
    or do you finance a newer truck?
    The advantage I see to leasing is the tax deductions
    Who leases to new companies though? The manufacture like Freightliner, Volvo, etc won’t touch you. What companies lease trucks out?
     
    Last edited: Dec 5, 2019
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  3. kemosabi49

    kemosabi49 Trucker Forum STAFF Staff Member

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    Some O/O do lease there trucks. They run there own authority of choose a carrier to run with
    This is way different than a lease/purchase offered by many companies, which rarely end well..
     
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  4. Thetrashnoob

    Thetrashnoob Light Load Member

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    Yes I don’t mean leasing through a company, I mean leasing the truck themselves through a Finance/lease company. And with their own authority
     
  5. Dino soar

    Dino soar Road Train Member

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    I have heard of some people that buy the truck in their personal name and then they lease it back to their LLC or Corporation.
     
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  6. Brandt

    Brandt Road Train Member

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    If anyone needs a taxes write off I do consulting ! That's kinda of a joke because you don't lease a truck for the tax write off. Most people do a lease because they don't have any money. The cheapest it way is to buy a truck. Just write a check. You can get a loan if you have a down payment. The most expensive is leasing a truck.

    Look at Prime Inc they charge something like $4,000 a month to lease a truck. That's kinda expensive, but you can walk away any time you want. It not a good deal for the driver but prime probably does real good. Not just prime but most lease deals are set-up to cover the company leasing the truck. Because if you fail or quit, they get the truck back and lease it to another new driver. Kinda like they are selling a dream of being your own boss but they setup all the terms. I still think the money in leasing a truck is made by the leasing company in the end. Because they sell the truck as a used truck for $40,000 or $50,000
     
  7. Thetrashnoob

    Thetrashnoob Light Load Member

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    I know a lot of people lease because they don’t have the cash to buy outright. The leases are usually more per month than a loan. But I thought the reason the lease could be a better deal is it’s tax deductible? Lowering your tax always helps
     
  8. Long FLD

    Long FLD Road Train Member

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    When you lease you can deduct the payment. When you purchase you depreciate the cost of equipment, usually over three years.
     
  9. Thetrashnoob

    Thetrashnoob Light Load Member

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    So what happens when you buy a 15k dollar truck, how does depreciating it work?
     
  10. Long FLD

    Long FLD Road Train Member

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    I have no idea. I’ve never bought one that cheap. I’ve always depreciated mine out over three years.
     
  11. wichris

    wichris Road Train Member

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    One advantage of leasing is the replacement every *** years. You know the cost for the time used, no worry what replacement values are.
     
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