Penske

When the lease doesn't transfer to ownership you can't take the depreciation because you haven't lost any value. They are losing the value from the time you take the truck until you give it back. But you do expense the entire cost of the lease.

 

I was under the impression that when the lease is written up with a buyout clause at the end, and depending on the legal language of the lease agreement, you could depreciate normally. I'm no accountant so I could be entirely wrong on this. just going off of my understanding of what my tax guy told me. It's entirely possible I misunderstood him, he just specifically mentioned to avoid paclease for the tax implications, tho did not street me away from other leases.

 

Penske Lease is $750.00 a week, plus .14 cents a mile.

 

I was quoted a high rate, but not that high! are you sure that not the short term rental rate? cause that's a good grand a month higher than the rate I got

 

I have always thought that leasing thru Ryder is high but $750.00 per week and .14 per mile sounds more like a rental rate. Just FYI i pay on average for leased trucks at about $2200.00 per month and $.08 per mile.

 

Agreed, short term rentals are much higher in than leases. A rental truck usually doesn't get used every day of the month so they charge a premium. The longer the term the better the lease rate. These Ryder and Penske guys make a lot of money off of selling used trucks. They get the residuals set low, get customers to pay a lot of depreciation and they make out well on the sale

 

I thought rentals did not get used that much but I have had to call around to find one the past few times

 

Well it th logic behind it , anyway.