In the process of setting up my own company with authority for OTR loads within 800 miles of home on the west coast. I know that leasing a new truck will cost a small fortune every month, but I want the full service on the truck so I don't have to worry about paying for repairs, and I believe some offer a loaner truck if you're down more than a couple days. Thinking about a 3 year lease to begin with. I have freight contracts set up that will bring in a great income and more than cover the lease and outrageous insurance costs for a new start-up. If I can come in at or under $5,000 a month I'll be in good shape.
Have others here done this or am I the first idiot to consider it?
O/O's with authority ever lease new trucks?
Discussion in 'Ask An Owner Operator' started by SteveScott, Apr 19, 2018.
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On a new truck I’m paying 2400.00 month to own it. I could lease a truck from International with fleet specs for 1650 a month. By leasing I would also not have to shell out the money for down payments. What you miss out on is depreciation by owning the equipment and the ability to spec a truck for maximum efficiency. It depends on your needs and tax situation which is better.
77fib77, izifaddag and SteveScott Thank this. -
I thought about the depreciation, but if I lease it 100% of the lease payments are deductible as a business expense, and I'm not dealing with a huge down payment. -
That's what I thought usually a base rate plus a per mile charge
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Check out your local national lease. I know the Company i used to work for started leasing from them. They spec their trucks out, ordered brand new. The boss man told me it’s cheaper for him than buying new trucks. They have 8 trucks leased right now, but as the company trucks age out they are replacing them with these leases
Tug Toy and SteveScott Thank this. -
Just be careful about a lease with someone like Ryder....they can find creative ways to charge drivers and fleet owners. They will throw that "driver negligence" at you just to get a few hundred extra dollars out of you. I've heard stories of guys who have a tire blow out and get charged 900 dollars for that one tire. Everybody knows that blowouts happen, especially since this rough winter has created so many potholes
SteveScott Thanks this. -
I just figured the full service covered everything except tires. Didn't think of that.
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izifaddag, SteveScott, bryan21384 and 1 other person Thank this.
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Check with Lone Mountain on a lease/purchase. That’s where I got my 2017 Cascadia Evolution. Still 100% deductible as a lease payment but after 60 months you own it.
SteveScott Thanks this. -
Sorry but I don’t see the tax advantages of leasing....
Either way the total cost of the truck is 100% deductible. If you own it the only difference is in what year you get to take the deduction. And the interest is deducted in the year paid.
There may or may not be advantages to leasing but taxes not so much.redoctober83 Thanks this.
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